Although Consumer Home Equity Loans and Home Equity Lines of Credit are both secured by residential property, they differ in important ways.
A Consumer Home Equity Loan is an installment loan product with a fixed interest rate and fixed monthly payment. When your application is approved, the full loan amount you applied for is disbursed to you at once, and you begin accruing interest on the outstanding amount immediately from that day.
In contrast, a Home Equity Line of Credit (HELOC) is a revolving line that can be drawn on at any time during the Draw Period up to your available credit limit. You can draw on your HELOC by making a transfer within FHB Online, writing a check, or by requested a withdrawal in person at an FHB branch. As you repay the outstanding principal (the amount you have drawn from your line), your available credit will increase by the amount you have repaid. Provided your HELOC is still in the Draw Period, you may choose to draw on your line as often as you wish. A HELOC may have a fixed introductory promotional rate for the initial part of its Draw Period, after which it reverts to the variable rate. Consequently, your monthly payment will vary if your outstanding balance and/or the rate changes
