Finance
What is a 'Home Equity Loan' (HEL) versus a HELOC in Delaware?
AA HEL is revolving credit; a HELOC is a lump-sum loan
BA HEL is a fixed-amount, fixed-rate second mortgage paid in a lump sum; a HELOC is a revolving credit line✓ Correct
CBoth have identical terms; the names are used interchangeably
DA HEL is for commercial properties; a HELOC is for residential
Explanation
A Home Equity Loan (second mortgage) provides a fixed lump sum at a fixed interest rate, repaid in fixed monthly installments. A HELOC is a revolving credit line the borrower can draw from as needed, typically at a variable interest rate.
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