Both let you tap home equity, but they work differently. A home equity loan gives you a lump sum at a fixed rate with stable payments. A HELOC is a revolving line with variable rates. Choose the one that matches your needs. Dream Financial Management since 1994.
| Feature | Home Equity Loan | HELOC |
|---|---|---|
| Rate Type | Fixed | Variable (Prime + margin) |
| Rate Range | 7-8.5% | 7-9% |
| Funds Access | One lump sum at closing | Draw as needed over 10 years |
| Term | 5-30 years | 10yr draw / 20yr repay |
| Monthly Payment | Fixed P&I from day one | Interest-only during draw |
| Closing Costs | $500-2,000 | $0-500 |
| Best When | One-time expense, want certainty | Ongoing/uncertain costs, want flexibility |
Dream Financial Management evaluates your needs to match you with the perfect home equity product. 500+ lenders. Since 1994.
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