A HELOAN resembles a traditional loan. You borrow a specific amount, which is provided as a one-time cash payout at closing, and then you make regular payments during a fixed repayment period.

With a home equity loan, you apply for the amount you need.

Most charge a fixed interest rate that doesn’t change during the life of the loan.

Each payment, the same every month (if it is a fixed-rate HELOAN), includes interest charges and a portion of the loan principal.