Home Equity Line of Credit (HELOC) is a form of revolving credit in which your home serves as collateral. With a HELOC, you will be approved for a specific amount of credit. Once approved, you will be able to borrow up to your credit limit whenever you want. It works similarly to a credit card, but is a lot less expensive and the HELOC may be tax deductible.

Home Equity Loan, like a HELOC, is secured by your home’s equity and may also be tax deductible. A home equity loan allows you to fix your monthly payment, which will include both interest and principal. The interest rate on a home equity loan typically starts higher than a HELOC but remains fixed for the entire life of the loan. Most home equity loans require good to excellent credit history.

Home equity loans are good for large single purchases, such as purchasing an automobile, boat, RV or making a substantial one-time renovation to your home.

Lending.com offers both HELOC and Home Equity Loans for your financing needs. Search rates and apply online today.