Compare HELOC and home equity loan — revolving credit vs lump sum. Which is right for your Florida home?
Written by Renzo Johnson, Licensed MLO · NMLS #PENDING · Last updated: February 2026
- HELOC: revolving line of credit, variable rate, draw as needed
- Home equity loan: lump sum, fixed rate, predictable payments
- HELOC: 10-year draw period + 20-year repayment typical
- Home equity loan: 5-30 year term, fully amortized
- Choose HELOC if: you need flexible access over time (ongoing renovations, emergency fund)
- Choose home equity if: you need a specific amount now (one project, debt consolidation)
- Both use your Florida home as collateral (second lien position)
- Both may offer tax-deductible interest if used for home improvements