HELOC vs. Mortgage

A mortgage is a loan used to buy a home, repaid over many years with fixed or variable interest. A Home Equity Line of Credit (HELOC) is a revolving loan secured against your home's equity, allowing you to borrow up to a certain limit as needed, often for expenses like renovations or debt consolidation. While a mortgage is primarily for purchasing property, a HELOC provides flexible access to funds based on your home's value. Both are secured by your property, but they serve different financial needs and have different repayment structures.