A Home Equity Loan provides a lump sum of money with a fixed interest rate, typically used for a specific purpose like home improvements. You repay it in installments.
A Home Equity Line of Credit (HELOC) is a revolving line of credit based on your home's equity. You can borrow as needed, repay, and borrow again within a set limit. Interest rates can be variable.
Choosing between them depends on your needs and financial situation. A loan suits one-time expenses, while a HELOC offers flexibility for ongoing or variable costs. Consult a financial advisor to decide which is best for you.