Home equity Loan not HELOC. How to answer "Is this loan a home equity line of credit or a loan you've ever refinanced?"

[Carl]

How is it not a HELOC if it's a home equity loan? Is the loan secured by property as indicated in either box 7 being checked, or an address in box 8 on the 1098 - Mortgage Interest Statement?

[jeleenepunzal]

which type of loan is it

[Vanessa · Accepted solution]

If this is a Home Equity Loan, you will answer YES, to the "Is this loan a home equity line of credit or a loan you've ever refinanced"

It will take you on the correct answer path to determine your interest deductibility. 

[callan15]

Home equity loans and HELOCs are both equity loans but are quite different. HELOCs are lines of credit that go up and down depending on how much you borrow against it and repay back. Not too different to how credit cards work. Standard home equity loans are a total loan of the full amount you take out.  $25,000 right away vs. what you take out in credit.