Home equity loans and home equity lines of credit (HELOCs) let homeowners borrow against the value they have built in their property. Because these are secured by your home, rates are typically lower than unsecured personal loans—but your home is collateral if you default.
Home equity loan vs. HELOC
Home equity loan: Lump sum at fixed rate and fixed payments—ideal for one-time projects with known costs.
HELOC: Revolving credit line, often variable rate—ideal for ongoing expenses or phased renovations.
Typical requirements
- 15–20% equity remaining after the loan (combined LTV often max 80–90%)
- Credit score 620+ (680+ for best rates)
- Stable income and acceptable debt-to-income ratio
- Appraisal and title work required
Common uses
Kitchen and bathroom remodels, roof replacement, debt consolidation, college tuition, and emergency reserves. We help you compare equity products against cash-out refinance to find the lowest total cost.
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