What are the differences between a home equity loan and a home equity line of credit?

What are the differences between a home equity loan and a home equity line of credit?
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#1

Is one better than the other? I am 37 years old with a credit score of 740. I just refinanced and looking to build an addition onto my home.


#2

A home equity loan is a set dollar amount, with set payments. Much like a car loan. You make the same payment each month until the debt is paid in full.
A home equity line of credit is more like a credit card. You can use it when you want, and as you pay it off, the money is available for you to use again.


#3

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