What's the difference between a HELOC and a home equity loan?

A HELOC (Home Equity Line of Credit) is variable-rate and works like a credit card — you draw what you need during a 5–10 year draw period and pay interest only on the drawn balance. Typical 2026 APR: 7.5–9.5%. A home equity LOAN is a fixed lump-sum disbursement at a fixed rate (typically 7.5–9.0% APR), repaid over 10–20 years. Use HELOC for phased renovations or when total cost is uncertain; use a home equity loan for a single defined project where you want fixed monthly payments and rate certainty.