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Whats the difference between a home equity loan and a line of credit?

April 26, 2017home equity line of credit loan

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Whats the difference between a home equity loan and a line of credit?

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A home equity loan typically has a fixed interest rate and is given in one lump sum. Equal monthly payments are made over the term of the loan. A line of credit usually has a variable interest rate and funds are accessed as needed. Interest charges are assessed only on that portion of the funds that are used (perfect for home improvement projects that can extend over a period of time and have some uncertainty in terms of cost).