A home equity line of credit is a variable-rate open-end loan. It allows you to draw on your loan at your convenience with a 15-year draw period and a 15-year repayment period. With a home equity line of credit, you only make payments on the funds you use. A home equity loan is a closed-end loan in which the amount of the loan is disbursed upfront. The loan has a specified term of 5-, 7-, 10-, or 15 years