How to Choose Between a HELOC and a Home Equity Loan

Are you considering borrowing against the equity in your home? If so, you may be confused about whether to apply for a home equity loan or a home equity line of credit (HELOC). Follow these steps to learn which is right for you.

Difficulty: Easy

Instructions

1. Visit Bankrate.com and select 'Home Equity' from the choice across the top of the screen.

2. Look for the section labeled 'Calculators' and select 'Loan vs. Credit Line'.

3. The Loan vs. Credit Line calculator will walk you through a series of questions. Answer each question given to you and click 'Next'.

4. When the calculator has enough information, it will give you an answer about whether a Home Equity Loan or Home Equity Line of Credit (HELOC) is best for your situation.

Resources

• Other Articles by Julie Mayfield

[Gardengates]

on 8/11/2008 In this housing market (and I'm in CA!) all advise is useful!

[01KendraWrites]

on 8/11/2008 timely article. Great!

[Hapworth]

on 8/11/2008 Good to know!

[LilacGirl]

on 8/11/2008 Another good resource article from you. Thanks for the information.