An effective. Both sort of financing utilize your own house’s equity, more often than not, to help you document a 2nd lien on your own family while the guarantee getting the loan. The difference between both is how the bucks is offered for you. A true Home Guarantee Loan is actually a single-go out disbursement regarding finance; whereas, an excellent HELOC are an effective rotating credit line. This is why you could progress the cash, pay it back, right after which utilize it again during the mark time of the mortgage.