A Home Equity Loan gives you a lump sum upfront with a fixed interest rate, while a HELOC is a revolving line of credit you can draw from as needed—similar to a credit card. A home equity loan gives you a lump sum upfront with a fixed interest rate and fixed monthly payments. A HELOC is a line of credit you can draw from as needed, with a variable interest rate. HELOCs offer more flexibility, but the variable rate means your payments can increase over time.