Home equity lines of credit often have more flexible repayment terms than a standard home equity loan. Home equity loan payments are typically fixed over the repayment period, while home equity lines of credit can offer interest-only payment terms, or outstanding balances can be repaid using a variety of repayment strategies.
Home Equity Loan or Line of Credit?
Home Equity Loan or Line of Credit?
Home Equity Loan Payment |
Initial Home Equity Line of Credit Payment |
|---|---|
| $ 316.73 | $ 900.00 |
| Year | Home Equity Loan | Home Equity Line of Credit |
|---|---|---|
| 0 | $ 30,000.00 | $ 30,000.00 |
| 1 | $ 27,616.15 | $ 22,077.13 |
| 2 | $ 25,112.83 | $ 16,246.66 |
| 3 | $ 22,484.06 | $ 11,955.99 |
| 4 | $ 19,723.54 | $ 8,798.46 |
| 5 | $ 16,824.68 | $ 6,474.83 |
| 6 | $ 13,780.54 | $ 4,764.85 |
| 7 | $ 10,583.84 | $ 3,506.48 |
| 8 | $ 7,226.94 | $ 2,580.43 |
| 9 | $ 3,701.80 | $ 1,898.95 |
| 10 | $ 0.00 | $ 1,397.45 |