If you have built equity in your home, you can borrow against it for renovations, debt consolidation, or major expenses. The two main tools are a home equity loan and a HELOC.
Home equity loan
This is a one-time lump sum with a fixed interest rate and a fixed monthly payment. It is predictable and works well when you know exactly how much you need, like a single big project.
HELOC (home equity line of credit)
A HELOC works more like a credit card secured by your home. You draw what you need, when you need it, and pay interest only on what you use. Rates are usually variable.
How to choose
- Choose a home equity loan for a fixed payment and a known, one-time cost
- Choose a HELOC for flexibility and ongoing or uncertain expenses
Both put your home up as collateral, so borrow with a clear plan to repay. We can compare the fixed and flexible options for your goals.