Fishers, IN · Member since 2015 · 42 posts · 17 votes
10y
@Jeremy Sanders I agree with @Al Wilson with the HELOC you can pull money out of the line of credit to make a purchase and can begin paying down the debt by putting money back into the line of credit. The flexibility that Al is referring to (I believe) is that although you are paying back the loan you can still draw from this account at any time for a purchase in the future. With the Home Equity loan, once you use that loan to make a purchase, you are stuck paying back that loan in its entirety with no additional access to funds.
I personally have a HELOC open right now and the flexibility is great plus its interest only and the mortgage interest is tax deductible.
I hope this helps, but feel free to ask any additional questions!
Cameron, NC · Member since 2014 · 58 posts · 5 votes
10y
Thanks to you both! @Al Wilson@Brandon Borah, You hit the hammer with the nail with your response, I just couldn't answer the question clearly. I was trying to figure if both sets of equities give you the ability to pull receive once. I see now that HELOC is way better.