Another important difference between a home equity loan vs. a line of credit is the interest rate. Home equity loans typically offer flat (fixed) interest rates, meaning the rate is locked in for the term of the loan. HELOCS, on the other hand, typically offer adjustable interest rat...
While home equity loans offer fixed interest rates that will not change, HELOC rates are variable. This means that rates rise and fall with the broader rate market. So even though your HELOC had a lower interest rate when you first took out the loan, the rates will increase (or decrease)...