fferent story). This is where the home owner can borrow against the property in a more flexible manor. For example the sum on the Equity is as above, but the amount you borrow and the number of times you can borrow are different. Lets say you are putting your child through college, The way that a Home Equity Loan and a Home Equity Line of Credit are different confuses a lot of people when they are looking for ways to release the Equity in their home. They are very much different and we are going to look at the two and how they differ from one another.

A Home Equity Loan is a loan where the home owner can borrow against the Equity that is in your home. (Confused already?) OK lets break it down a little. When you borrowed against your home you took out a loan for the cost of say 90% of the value of the property. (This means the 10% that you put down is already your Equity) After paying your mortgage off for a number of years you can get your home revalued, if the price of your home has gone up then you have more collateral than you started with. For example if you take the total amount left to pay on your mortgage away from the amount that your home is currently valued at and you get the Equity that is in your property.

A HELOC (Home Equity Line of Credit) is also known as an Open End Home Equity Loan (We think that because it didn't sound good as OEHEL they used HELOC but that is a different story). This is where the home owner can borrow against the property in a more flexible manor. For example the sum on the Equity is as above, but the amount you borrow and the number of times you can borrow are different. Lets say you are putting your child through college, y

Home Equity Loan is a loan where the home owner can borrow against the Equity that is in your home. (Confused already?) OK lets break it down a little. When you borrowed against your home you took out a loan for the cost of say 90% of the value of the property. (This means the 10% that you put down is already your Equity) After paying your mortgage off for a number of years you can get your home revalued, if the price of your home has gone up then you have more collateral than you started with. For example if you take the total amount left to pay on your mortgage away from the amount that your home is currently valued at and you get the Equity that is in your property.

A HELOC (Home Equity Line of Credit) is also known as an Open End Home Equity Loan (We think that because it didn't sound good as OEHEL they used HELOC but that is a different story). This is where the home owner can borrow against the property in a more flexible manor. For example the sum on the Equity is as above, but the amount you borrow and the number of times you can borrow are different. Lets say you are putting your child through college,

at you put down is already your Equity) After paying your mortgage off for a number of years you can get your home revalued, if the price of your home has gone up then you have more collateral than you started with. For example if you take the total amount left to pay on your mortgage away from the amount that your home is currently valued at and you get the Equity that is in your property.

A HELOC (Home Equity Line of Credit) is also known as an Open End Home Equity Loan (We think that because it didn't sound good as OEHEL they used HELOC but that is a different story). This is where the home owner can borrow against the property in a more flexible manor. For example the sum on the Equity is as above, but the amount you borrow and the number of times you can borrow are different. Lets say you are putting your child through college,

e away from the amount that your home is currently valued at and you get the Equity that is in your property.

A HELOC (Home Equity Line of Credit) is also known as an Open End Home Equity Loan (We think that because it didn't sound good as OEHEL they used HELOC but that is a different story). This is where the home owner can borrow against the property in a more flexible manor. For example the sum on the Equity is as above, but the amount you borrow and the number of times you can borrow are different. Lets say you are putting your child through college,

fferent story). This is where the home owner can borrow against the property in a more flexible manor. For example the sum on the Equity is as above, but the amount you borrow and the number of times you can borrow are different. Lets say you are putting your child through college, you can arrange for a HELOC and take the sum required (as long as it is inside your agreed credit limit) each semester to pay tuition fees.

So to sum up a Home Equity Loan is where you have a fixed sum once that you put your home up as collateral against the loan and a HELOC is a line of credit that you can borrow against as many times as you like up to the limit of that particular line of credit.