Home equity line vs HELOC

[shadyoc]

I don't really understand the difference between these two.  I always thought it was just borrowing money against your house's equity.  I researched online and the jist I understand is that a home equity is fixed rate up to 10 years and gives you a lump sum and HELOC is variable rate up to 10 years and works like a credit card.  Does HELOC also give you a lump sum?

Let's say I want to take out a $100k loan at once to help offset my mortgage during some tough times. As soon as I get extra income, I will pay off this equity loan.

I found this website and was playing with the numbers.
https://www.thirdfederal.com/borrowing/home-equity/calculators-rates

It says a $100k HELOC = 3.49% for 10 years.  Payment would be $988/month with total payments of $118k ($18k interest)
It says a $100k home equity loan = 4.75% for 10 years.  Payment would be $1048/month with total payments of $126k ($26k interest)

It sounds like a HELOC would be slightly lower monthly payment, as well as LESS total interest, over 10 years.  But I thought the HELOC has a variable rate so not sure how they calculate the 10 years at 3.49% fixed.


In addition, the home equity loan also has a 5/1 ARM (30 year) option at 3.99% interest rate.  For $100k loan, it is saying that the payment would be $476/month with total payments of $171k (a staggering $71k interest!!!!) over 30 years.  How does the calculator do this?  Isn't it a variable loan that adjusts in the 6th year?  Aren't there caps and lifetime limits so not sure how they are calculating a $71k interest over 30 years with a 3.99% interest rate? 

Someone please shed some light if I am misunderstanding these products.

 

[BruinDoc]

So HELOC stands for Home Equity Line Of Credit?it is the same thing as a home equity line. But there is something called a Home Equity Loan.  The similarities are that they both, as the names imply, are loans based on equity on the property.  There are a few differences.  The HELOC is, in a sense, a revolving credit line: one can draw on it and pay it off as needed. Usually, there is a fixed 'draw period' which tends to be 10 years in my experience on a 30 year product.  One can draw on the credit line up until this time, at which time the borrowed amount becomes a fully amortizing loan over the final 20 years of the term. Also, for any outstanding amounts in that 10 year draw period, there are interest-only payments.  The interest rate is variable and tends to be related to the federal funds rate plus a margin ie. prime + 0.75%.
A home equity loan is a fixed amount taken at close, and I believe tends to be a fully amortizing loan over 30 years. It is also a fixed rate which usually tends to be higher than the initial variable rate but cannot increase further.  I have not had a fixed home equity loan before.
Hope this helps!