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What’s the difference in a Home Equity Line of Credit and a Home Equity Loan?

April 26, 2017home equity line of credit loan

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What’s the difference in a Home Equity Line of Credit and a Home Equity Loan?

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A Home Equity Line is an open line of credit. You are approved for a specific credit limit that can be used repeatedly over a period of time. It has a variable rate based on the prime rate, and monthly minimum payments are variable because they are calculated as a percentage of the balance you owe.