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Home equity line of credit (HELOC) A revolving line of credit secured by the equity value in a borrower's residence. A home equity line enables the home-owner to tap into the accumulated equity in their home.
This is a reusable line of credit, since the principal balance becomes available as soon as it is paid back during the draw period. The line may be accessed by checks or other channels.  Some uses for a home equity line of credit include: Remodeling the home, higher education, travel, automotive purchase or other life needs.
Home equity loan Consumer loan secured by the residence. This is a fixed rate loan with set monthly payments where the entire loan amount is given to the borrower at closing. A home equity loan is an excellent choice for homeowners with current defined needs.
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