What is the difference between a Home Equity Loan and Home Equity Line of Credit (HELOC)?

A Home Equity Loan is a closed-end loan with an initial fixed advance followed by a set repayment period of a standard monthly payment for a set term (example: $250 per month over 10 years). It operates somewhat like an auto loan.

A Home Equity Line-of-Credit is an open-ended credit line that can be drawn upon, paid down and accessed again up to the credit line limit for a set period of time. The payment amount varies based on the amount of the line in use. It operates somewhat like a credit card.

Northpointe Bank offers both Home Equity Loans and Home Equity Lines-of-Credit. Products may not be available in all states.