The main difference is with a HEL (Home Equity Loan) you tell the lender how much you need, and they lend it to you. With a HELOC (Home Equity Line of Credit) the lender establishes how much in total they will lend you and you borrow against it when you need it and pay it back when you don't. With a HEL you are borrowing a fixed amount and you get it all at once. With a HELOC you can borrow up to a certain amount, and just whenever you need it.