HELOC vs HELOAN: Find The Right Home Equity Option for You

Bellco Credit Union Bank Smarter. Live Smarter. Heloc Vs. Heloan: Options For Your Equity For many of us, our greatest asset is our Home. And the difference between the value of your home and
the amount you owe is your equity. While we recommend you use your home equity judiciously, you also should know that not all Home Equity products are the same. The two big Home Equity products are Home Equity
Lines of Credit and Home Equity Loans. A home equity line of credit offers flexibility. You qualify for a specific amount of money. Then
you can withdraw just what you need. You only pay interest on the amount of credit you use. This is especially useful when you are doing a project like remodeling your kitchen. You may not need all the funds you qualify for and you certainly don’t
need to be paying interest on money you don’t need yet. The other Home Equity product is a Home Equity Loan. Here you and your lender determine a specific
loan amount you need all at once. Then you lock in a rate and term to pay it back. If you were to use some of your home
equity to pay your credit card bills and move your debt from high interest financing to a lower
non-variable rate, the home equity loan is best. So while they sound similar, and some people use them interchangeably, the HELOC—or home equity line of credit—and the HELOAN – or
Home Equity Loan – are two different products. It is worth mentioning that there are some hybrid products. Bellco’s home equity product is called Choiceline. It gives you the flexibility to borrow just the money you need, while still locking
in a rate like you would on a fixed amount of money. Using these home equity products appropriately can help you
get the most from your most valuable asset. Bellco Credit Union. Banking Smarter. Bank Smarter. Live Smarter. Bellco.org

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