Turn the equity in your home into cash you can use.
Compare HELOC rates and home equity loan offers from multiple providers, and see what you could borrow against your home’s value.
HELOC rates vs. home equity loan rates — what’s the difference?
Both let you borrow against your home’s equity. They work differently, and according to the CFPB’s explainer on the topic, that structural difference is exactly what tends to confuse people comparing the two for the first time.
HELOC (Home Equity Line of Credit)
A revolving line of credit, similar to a credit card, secured by your home.
- Draw funds as needed, up to your limit
- Variable interest rate in most cases
- Pay interest only on what you draw
- Good fit for ongoing or uncertain expenses
Home Equity Loan
A lump-sum loan secured by your home, separate from your first mortgage.
- Receive the full amount up front
- Usually a fixed interest rate
- Fixed monthly payments over the loan term
- Good fit for one-time, known expenses
What homeowners use their equity for
Home equity questions, answered
How much of my home’s equity can I borrow?
Most lenders allow borrowing up to a combined 80–85% of your home’s value across your primary mortgage and any equity loan or HELOC, though this varies by lender and your credit profile.
Does a HELOC affect my first mortgage?
No. A HELOC or home equity loan is a separate, second lien on your home — your existing mortgage and its rate stay exactly as they are.
Is home equity debt tax deductible?
Interest may be deductible if the funds are used to buy, build, or substantially improve the home securing the loan, under current IRS rules. This isn’t tax advice — check with a tax professional for your specific situation.
What happens if I can’t repay a HELOC or home equity loan?
Because these loans are secured by your home, failing to repay could put your home at risk of foreclosure, the same as with a primary mortgage. This is the core tradeoff with any equity-based borrowing: rates tend to be better than unsecured debt like credit cards, precisely because your home backs the loan. Borrow only what you’re confident you can repay, and factor in that HELOC payments can rise over time if your rate is variable.