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Before you borrow from your home's equity, it is critical to understand exactly what a HELOC is, what it isn't, and how to avoid falling into financial trouble with this kind of loan.

HELOCs Vs. home equity loans: What's the difference?

In order to determine whether a HELOC is right for you, it's important to understand the difference between a HELOC and a home equity loan. Some consumers confuse the two or assume they are interchangeable terms. In both types of loans, a homeowner taps into their home's equity, which is the difference between the home's market value...

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