Like, while performing a remodel and you will think you would like $forty,one hundred thousand you finish the work for $twenty-five,100000, you can simply pull out the latest $25,100000 you desire and you will are obligated to pay desire on that number. But not, for people who put property collateral financing and you can got out $forty,100000, you’d get that currency as the a lump sum payment and you will are obligated to pay desire toward that which you.