Home Equity Comparison Chart

	Home Equity Loan	Home Equity Line of Credit
Profile/Overview	A closed-end home equity loan, or term loan, is provided to you as a one-time lump sum that is paid off over a set period of time.	A Home Equity Line of Credit is a line of credit that can be used as you need it up to your available credit line. You can use any portion of it at any time and pay it back at any time.
Ideal usage examples	Large one time purchase: Purchasing a new car Down payment on a house Consolidating debt	Ongoing expenses: Home improvements Medical expenses Small business expenses
Interest Rate/Payment	The interest rate on this type of loan is fixed and is accompanied by equal payments each month.	The interest rate is variable and is tied to the prime rate.
Interest is tax-deductible?	Yes, it may be (please consult your tax advisor).	Yes, it may be (please consult your tax advisor).
Good Choice if...	You like the stability of a predictable payment You have a one time need	You potentially have multiple needs You prefer flexible payment options that have room to adjust