Homeowners have two major home equity borrowing options: the home equity loan and the home equity line of credit (HELOC). Both options allow homeowners to take out a loan based on the existing equity in their properties. In both cases, the property is used as collateral and may be foreclosed upon should the borrower default on the loan.
If you’re trying to decide how to borrow, take a look at this chart illustrating the most important differences between home equity loans and home equity lines of credit.