HELOC and HELoans

Heloc- A Home Equity Line of Credit (HELOC) is a type of loan that allows homeowners to borrow against the equity in their home. Equity is the difference between the current market value of the home and the outstanding mortgage balance

HeLoan- A Home Equity Loan, often referred to as a HELoan or second mortgage, is a type of loan in which a homeowner borrows against the equity in their home. Here’s a detailed look at how a Home Equity Loan works and its key features:

How a Home Equity Loan Works

1. Lump-Sum Payment: Unlike a Home Equity Line of Credit (HELOC), a Home Equity Loan provides the borrower with a lump sum of money up front.
2. Fixed Terms: Home Equity Loans typically have fixed interest rates and fixed repayment terms, meaning the borrower pays a consistent monthly amount over the life of the loan.
3. Equity as Collateral: The loan is secured by the equity in the home, which is the difference between the home's current market value and the outstanding mortgage balance.