A Fixed 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. Funds can be advanced via check, debit card, online banking or at any branch location and can be used as needed. Funds come with an interest-only draw period. You can pay the principal balance at any time. When the line of credit expires, you enter the repayment period. Money owed must be repaid before or at the time of selling your home.