Alexle2007
DIS Veteran
- Joined
- Apr 15, 2013
I think of a HELOC more like a credit card that you can draw different amounts from where as an equity loan is typically a set amount that you take the set amount on like that $100k for the house expansion. Instead of a HELOC where you have $100k available and I borrow $10k for hard wood floors and 6 months later I borrow another $5k to have the house painted and then 2 years later I borrow $40k to have the basement done so first I am paying on $10k, then $15k then $55k. The cash-out allows to pull equity into that primary mortgage so it is part of that single loan and not separate when you refinance. So if you wanted that $10k for hard wood floors, you refi was $210k but you take that extra $10k as cash and refi for $220k. We haven’t done any of them.Would that be the same as a HELOC? I’m familiar with that and we have one open. Just never heard the term ‘equity loan’ but that sounds like a HELOC.
Last edited: