Dear Mary: We have decided to pay off a bunch of bills and do some much-needed repairs on our house. Can you tell me the difference between a home equity loan and a home equity line of credit? Which would be better? —Scott Dear Scott: With a home equity loan, or a HEL, you walk away with a check for the full amount of the loan and a second mortgage on your home. You will likely pay a loan fee and closing costs. Interest rates are fixed and currently average around 5 percent. A home equity line of credit, or a HELOC, is a revolving line of credit, a lot like a credit card, except that your home is the collateral. You don’t get a check at closing, but rather a checkbook or debit card to access the funds as you need them. You make payments on the amount you’ve …
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