2. The prepayment and default behavior of the borrowers. This is because HEL borrowers can refinance their loans at lower rates or cash out their home equity by taking out a new loan. HELOC borrowers, on the other hand, tend to prepay their credit facilities slower than HEL borrowers, because they have more flexibility and convenience in accessing their funds. HELOC borrowers also tend to default less than HEL borrowers, because they have lower monthly payments and will explore their borrowing facilities to cover their expenses in case of financial hardship. However, HELOC borrowers may default more in the long run, especially if interest rates rise or home prices decline, which could reduce their equity cushion and increase their debt burden.