Looking to Refinance Your Maui Home or Condo? Heloc vs. Home-Equity Loan
Do you know the difference between Heloc (Home-equity line of credit) and Home-equity loan?
I Have Heard Of a Home-Equity Loan, But What is a Heloc?
A Heloc lets the homeowner borrow a set amount over a set amount of time using their home as collateral. Once a Heloc is paid off completely one can borrow against the line of credit again. A Heloc will normally have an adjustable interest rate. A Home-equity loan in comparison to a Heloc will let you borrow a one-time set amount, usually with a fixed interest rate.
So What is the Right One For You?
That will depend all on your needs and is good practice to review this with your financial adviser. In an article from the Wall Street Journal, Citizen Bank has said that home equity line volume has been rising by about 25 to 30 percent for the past two years. Follow the link to the article from the Wall Street Journal for more detailed information and explanation of the Heloc versus Home-equity loan trends.