A fixed-term loan that borrowers receive in a lump sum up front.  The home equity loan has a fixed interest rate and a schedule of fixed payments for the term of the loan.  Home equity loans are a great option for borrowers that like a set monthly payment or have a large expense such as a down payment or a major home repair project.  

Home equity lines give borrowers access to a variable, low interest-rate credit line that allows you to spend to a certain limit.  HELOCs are a great option for people who want to access a revolving credit line for variable expenses, such as tuition or home renovations and emergencies that they can't predict.