HELOCs and home equity loans extract value from your home but add to your debt. The loan is a lump sum, the HELOC draws money as you need it.Selling your home for a profit can mean a substantial windfall. But in the meantime, while you’re living there, that gain is locked up, out of reach — unless you access the equity with a home equity loan or a home equity line of credit, known as a HELOC.
