Home Equity Loans and Home Equity Lines are both considered second mortgages

A Home Equity Loan is structured very similarly to your first mortgage. You make a one-time choice on the amount you want to borrow and how long you want to pay it back - typically no more than 15 years. It is customary to get a fixed rate and fixed monthly payments.

With a Home Equity Line, you draw and repay funds similar to other revolving lines of credit like credit cards. You borrow as much or as little as you'd like going forward so long as you don't exceed the maximum loan amount and you at least make the minimum monthly payments based upon the balance owed that month. You'll typically get a 5-10 year draw period and then another 5-10 years to pay it off. Home Equity Lines are usually based upon the prime lending rate which is an Adjustable Rate.

Which is best for you?

Home equity loans and lines are great solutions for borrowing more than you'd want to put on a credit card because the interest rate is usually lower and the interest maybe tax deductible.

The Home Equity Line is credit is ideal for short term borrowing where you have a plan to get it paid off within a few years before interest rates go up. If it's going to take 5 or 10 years to pay off, you'll be better off locking in a fixed rate with a Home Equity Loan so you can budget a set payment and not worry about what happens to interest rates.

Warning:
Your home is the collateral. Don't borrow more than you can repay or you run the risk of losing your home.