Decision Center

HELOC vs Home Equity Loan

Line of credit vs lump sum against your home.

A HELOC gives you a revolving credit line with variable rates. A home equity loan gives you a lump sum with a fixed rate — like a second mortgage.

Option A

HELOC Comparison

Compares a variable-rate line of credit against a fixed-rate equity loan.

Ongoing renovationsEmergency reservesTuition over years

Typical user: Homeowner with irregular funding needs over time.

Option B

One-time lump sum, fixed payment, predictable amortization.

Single large projectDebt consolidationPredictable budgets

Typical user: Homeowner with one known, one-time expense.

Uncertain, ongoing costs → HELOC. One-time known amount → fixed home equity loan.

Compare current mortgage to a refinance; find break-even.

How extra payments shorten your mortgage and cut interest.