Both products borrow against home equity, but they behave differently.
Home Equity Loan
Fixed rate, lump sum, predictable payments. Best when you know the total cost (e.g., one renovation) and want payment certainty.
HELOC
Revolving line of credit, often variable rate. Flexible draws—good for ongoing projects or emergency access. Risk: rates can rise.
Risks
Your home is collateral. Job loss or payment shock can threaten foreclosure. Do not tap equity for lifestyle spending you cannot afford.
Conclusion
Match the product to your timeline and rate outlook. Compare APRs, fees, and draw periods carefully.