I'm curious what rates are for getting a home equity loan to buy a second property, and if it's common to pay for a second property in full with this type of loan.

For reference, I have about $450k in equity in my home, and can buy something to rent for ~$250k-$300k in my area, and am considering becoming a landlord after mulling over it for years.

I'm curious how a HELOC works, as I've never had one. Is it a completely separate transaction that remains separate from your original home loan? What are the typical loan terms and/or options for a HELOC? Can you do 10/20/30 yr fixed.. or ARMs, etc...

A HELOC has adjustable rates with the first year typically being fixed. It's a true line of credit you can pay down, draw back up as needed. Unless an actual appraisal is needed or the loan amount is large there are no closing costs. If you don't make a draw against it you pay nothing. Interest is calculated on outstanding balance.

I don't originate them but work for a bank that does. I have lots of clients who have used them for one reason or another. I think the first year rate right now is 3.5%.

Ok I think i'm understanding.. it's like a credit card?

My min. payment is interest only I assume? So yeh $275k @ 3.5%.. that's a large min. payment.
But for sake of a down payment, say $35k, now I'm at $1000 payment.

Can't do this in Texas. You refinance your home, getting 80% of the appraised value. You can then use the proceeds to do what you wish.

Can't do what exactly?

I'm in CO, so there's that.

So I'm realizing just now a heloc is different than just a home equity loan.

What are rates/terms on a normal home equity loan look like right now? That seems to make more sense for borrowing for a down payment or buying second home in full.

I think this would be a cash-out refi... and it's probably more than a 30yr fixed at the moment due to its risk... I would assume.

You could look into a CHELOC.