Home Equity Loans vs. HELOCs

If you’ve built up equity in your home and need access to cash, you might be considering a Home Equity Loan or a Home Equity Line of Credit (HELOC). While they both let you borrow against your home’s value, they work differently — and serve different needs.

Home Equity Loan:

• Think of this as a second mortgage.
• You get a lump sum upfront.
• It comes with a fixed interest rate and set monthly payments.
• Best for: One-time expenses like home renovations, debt consolidation, or big purchases.

HELOC (Home Equity Line of Credit):

• Works more like a credit card tied to your home’s equity.
• You’re approved for a credit limit, but only pay interest on what you use.
• Most HELOCs have variable interest rates.
• Best for: Ongoing or unpredictable expenses, like medical bills or college tuition.

Which is right for you?
If you want predictable payments and know exactly how much you need, a Home Equity Loan may be the way to go. If you prefer flexibility and access to funds over time, a HELOC could be a better fit.

Not sure? I can walk you through your options so you feel confident choosing what’s right for your goals.