What you need to know
If you’ve invested in a home and watched your equity build over the years, you can tap that equity for a new car, home improvements, college tuition or other expenses.
There are two main options for such borrowing: the home equity loan and the home equity line of credit, or HELOC.
Which is best for you?
The general rule of thumb is that if you need the money all at once, it’s better to take out a home equity loan. But if you’ll be spending the money in installments, such as for your child’s college education, you’re better off with a HELOC.
A home equity loan is delivered in a lump sum. A HELOC, on the other hand, is doled out in installments.