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Home-Equity Line of Credit vs. Home-Equity Loan

Question: What is the difference between a home-equity line of credit and a home-equity loan?

Answer: A home equity credit line allows you to borrow up to a specified limit. You can repay all or part of the amount and then borrow again if you wish (like a credit card). A home-equity loan is for a fixed amount, which is amortized and repaid over the loan term (like a second mortgage). As you pay down a home-equity loan, you cannot re-borrow on that loan.

-Robert J. Bruss