Finance
In Hawaii, a 'home equity loan' differs from a HELOC because:
AA. A home equity loan is a revolving credit line; a HELOC is a fixed-term loan
BB. A home equity loan is a lump-sum fixed-rate loan; a HELOC is a revolving variable-rate credit line✓ Correct
CC. A home equity loan requires the property to be paid off first
DD. There is no practical difference between them
Explanation
A home equity loan provides a lump sum at a fixed interest rate with fixed payments. A HELOC is a revolving credit line with a variable rate from which the borrower can draw funds as needed.
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