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

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Question by Heidi: What is the difference between a home equity loan and a home equity line of credit?
We need to get access to $ 30,000, but not sure of the exact amount.
Would it be enough to have the home equity line of credit?

Best answer:

Answer by Jimmy B
A home equity loan you get all the money up front. A home equity line of credit you have the money available and can use it as needed. With a loan you pay interest on the whole amount. With a line of credit you pay interest only on the amount that you have used.

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