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HELOC Vs Home Equity Loan: Which is Better?A home equity line of credit (HELOC) is a secured loan tied to your home that allows you to access cash as you need it. Typically, HELOCs will have lower interest rates and greater payment flexibility, but if you need all the money at once, a home equity loan is better. Home equity lines of credit (HELOCs) and home equity loans are two methods of borrowing money against the ownership stake you have in your home.