A Home Equity Loan is a traditional closed end loan often referred to as a second mortgage. The borrower receives a one-time lump sum to be repaid over a fixed term and interest rate. Monthly payments remain the same throughout the lifetime of the loan.
Commonly referred to as HELOC, this is a line of credit available for a set length of time. Money is issued by check and can be used as needed. Monthly payment will be the greater of $50, accrued interest or 1% of principal balance. Money owed must be repaid before or at time of selling your home or upon loan maturity.