Finance
In Virginia, a home equity loan differs from a HELOC in that:
AA home equity loan is a revolving line of credit
BA home equity loan disburses a lump sum at closing with a fixed repayment schedule✓ Correct
CA HELOC must be repaid within 5 years
DThere is no difference between the two products
Explanation
A home equity loan (second mortgage) disburses the full amount at closing with a fixed schedule. A HELOC is a revolving credit line where the borrower draws funds as needed up to the credit limit.
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