HELOC vs Home Equity Loan

What say you?

I want to do some remodeling and upgrading at the house. Considering a HELOC or home equity loan. From what I've read HELOC's are variable rate where as loans are not, but they're not as versatile.

Is that the case? I have roughly 40k in equity, credit is meh, income is high. 

What's my move? 

With a HELOC you only pay for what you use like a credit card.  So,  you can take out the line, spend what you need,  pay it back,  use some more,  etc. With a loan you get one large cash out that you are paying interest on immediately.  HELOC bro.

Phuckles -

With a HELOC you only pay for what you use like a credit card.  So,  you can take out the line, spend what you need,  pay it back,  use some more,  etc. With a loan you get one large cash out that you are paying interest on immediately.  HELOC bro.

Ahhhhhh. Yeah that sounds like a given then. 

Why not refi and pull money out? I just did it. Pulled $40k, lowered my interest a full point, and shaved 2 years off the mortgage. 

Stupidnewbie -

Why not refi and pull money out? I just did it. Pulled $40k, lowered my interest a full point, and shaved 2 years off the mortgage. 

I did a refi last year but wasn't able to pull anything out. Ltv wasn't low enough and my credit wasn't high enough.

Credit isn't much better right now. 

Gotcha.

Ttt

Helix,  you can keep it open after your project in case you need money for something 

Phuckles - 

With a HELOC you only pay for what you use like a credit card.  So,  you can take out the line, spend what you need,  pay it back,  use some more,  etc. With a loan you get one large cash out that you are paying interest on immediately.  HELOC bro.

Agreed.

One draw back.   You pay a fee/closing costs based on the entire line of credit.  However, if something happens to the housing market or your credit, they can close your line of credit. 

EasyTapper - 

One draw back.   You pay a fee/closing costs based on the entire line of credit.  However, if something happens to the housing market or your credit, they can close your line of credit. 

I got a HELOC through Charles Schwab Bank years ago with no fees or closing costs. Not sure if those are offered anymore, but I jumped on it. It expired a year ago. I only used it once to write a check when I bought a car, I then paid it off in a couple months. It was nice to have a HELOC.