Home Equity Loan
A home equity loan provides a lump sum payment for a specified use, such as home improvement or in conjunction with a new first mortgage for the purpose of purchasing a new home (called a piggyback loan). The interest rate is fixed and unlike a Home Equity Line of Credit, you cannot borrow any further funds from this loan.
PRO: The rate is set for the entire term of the mortgage. Your payments will not change.
CON: You must take the entire loan amount at time of closing and will be responsible for paying the interest. You do not have the flexibility of paying down principal and then drawing again at a later period in time.