HELOC
HELOC is an adjustable rate line of credit against your property that works similar to a credit card. You can borrow and pay back up to the line amount during the draw period. Many times you can qualify simply with bank statements. Approval, interest rate and line amount depend on several factors including credit score, loan to value and stability of income.
HELOAN
HELOAN is a fixed rate line of credit against your property. Depending on debt to income ratio, you can chose a payback term as low as 5 years and as high as 30 years. Because of this it can come with much lower monthly payments. Total household income is used for qualification, typically with bank statements. This can make for an easier approval. Approval, interest rate and loan amount depend on several factors including credit score, loan to value and stability of income.
