- HELOC:
- Revolving Credit: Access funds as needed up to a credit limit.
- Variable Interest Rates: Rates can fluctuate based on market conditions.
- Flexible Repayment: May offer interest-only payments during the draw period.
- Home Equity Loan:
- Lump Sum: Receive a fixed amount upfront.
- Fixed Interest Rates: Rates remain constant throughout the loan term.
- Fixed Payments: Regular payments of both principal and interest.