Difference Between Home Equity Line Credit (HELOC) vs Home Equity Loan (HEL)

For most people, their house is the most valuable asset for them. The price is always increasing so the value become much bigger after years.

Because it's very valuable, people can get benefit from their house beside for comfortable live place. They can get lending for a big sum of money from bank by making their house as the collateral for it.
Home Equity Line Credit (HELOC) vs Home Equity Loan (HEL)

There are two types of lending that you can get from bank by making your house as collateral. Home Equity Line of Credit (HELOC) and Home Equity Loan (HEL). Each type of these loan has their own beneficial for you. 

Basically, Home Equity Line of Credit makes you possible to get a serial loan of money until a certain time. It works just like credit card. You get a limit of loan from it and you take your money whenever you need too. The limit of the credit is mostly depended on your house value and your credit record.

While Home Equity Loan makes you get your total loan at one time ahead. People often call this loan as second mortgage. 

For further explanation, Michael Lush from +ReplaceYourMortgage Inc explain it clearly in this video :

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