Respuesta :
You don't receive a lump sum with a home equity line of credit (HELOC) but rather a maximum amount available for you to borrow—the line of credit—that you can borrow from whenever you like.
You can take however much you need from that amount.
What are Home equity loans ?
The words "home equity loan" and "home equity line of credit" have probably been bandied around and occasionally used interchangeably, but they don't mean the same thing.
When you take out a home equity loan, you might get a large sum of money up front and return it over time with set monthly installments. When you borrow money, your interest rate will be determined, and it should stay that way for the duration of the loan. Your loan balance is reduced and some of your interest charges are partially covered by each monthly payment. This type of loan is known as a "amortizing loan."
To view more questions about loans, refer to:
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