Unlike a HELOC loan, a home equity loan (sometimes referred to as a "Second Mortgage") is a one time lump-sum loan. The loan amount is ascertained by the value of the property which is determined by an appraiser from the lending institution. Other factors such as the debt ratio of the current property(s) which the home equity loan is using as collateral and credit history of the customer will also be used to determine the maximum loan amount.
Interest rates are generally lower than a HELOC loan and closer to the standard variable/fixed rates at the time.
Like HELOC loans, Home Equity Loans are generally used for major purchase including, but not limited to property repairs/improvements, large medical bills, paying off higher interest loans and purchasing new vehicles.