Both let you tap equity while leaving your first mortgage untouched; the difference is a fixed lump sum (the HELOAN) versus a variable revolving line (the HELOC). Leaving the first mortgage alone matters a lot if it carries a low rate you do not want to give up. A home equity loan (HELOAN), sometimes called a fixed second mortgage, hands you the full amount upfront and amortizes it over a fixed term, commonly 10, 20, or 30 years, at a fixed rate. The payment and payoff are predictable from day one, and the rate usually runs a bit lower than a HELOC's. A HELOC is a revolving line with a variable rate tied to the prime rate, so it moves whenever the Fed hikes or cuts. It has an interest-only draw period, often 3 to 10 years, where you pay interest only on what you have actually drawn, then it shifts into a fully amortizing repayment period. Flexibility is its main strength. How we would choose: for a known, fixed budget on a defined project, say finishing an ADU or an addition, the HELOAN's predictability usually wins. If you want revolving access to draw and repay in stages, the HELOC fits better. One caution on the HELOC: in a rising-rate stretch, that variable rate can climb well above where it started, so size the payment against a higher-rate scenario, not just the opening rate.