HELOC vs Home Equity Loan: Which Is Right for You?
Need to tap into your home’s value? Let’s explore your two main options: HELOCs and home equity loans. Both let you borrow against your home’s equity – that’s the difference between your home’s current value and what you owe on your mortgage.
Home Equity Loan: Your Fixed-Rate Option
Think of this as a traditional closed-end second mortgage. You get all the money upfront and make steady monthly payments.
What you can expect:
- Fixed interest rate that won’t change
- One lump sum payment
- Predictable monthly payments
- Various loan term available
- Potential tax benefits for home improvements (This is not tax advice. Consult with your tax advisor.)
Perfect for:
- Major home renovations
- Debt consolidation
- When you know exactly how much you need
HELOC: Your Flexible Borrowing Option
This is line of credit secured by your home. It works more like a credit card – borrow what you need, when you need it.
What you can expect:
- Variable and Fixed interest rate options available
- Ongoing access to funds during the draw period
- Pay interest only on what you use
- Draw period may vary depending on product
- Reuse available credit as you pay it down
Perfect for:
- Ongoing projects
- Emergency funds
- College tuition
- When you’re not sure how much you’ll need
Quick Decision Guide
You may choose a Home Equity Loan if you:
- Want fixed payments
- Know your exact budget
- Prefer predictability
You may choose a HELOC if you:
- Need flexibility
- Want ongoing access to funds during the draw period
- Are comfortable with variable rates (if choosing such option)
Important Note: Remember, both options use your home as collateral, so make sure you have a solid repayment plan.
Next Steps
Ready to explore your options? Our team can help you choose the right solution for your needs. Plus, we’ll walk you through current rates and help you understand exactly how much equity you can access.
Call (833)984-2471
Visit Intelliloan.com
Disclosures
Intelliloan, Inc. NMLS# 3290. For licensing information, go to: www.nmlsconsumeraccess.org. Intelliloan, Inc. is located at 500 N. State College Blvd. Suite 1400, Orange, CA 92868. Call toll free at: (888) 417-8562. Loan program restrictions apply. Loan subject to verification and credit approval. This is not a credit decision, an offer, or a commitment to lend. Your rate, fees, and other terms will depend on various factors. All rights reserved. © 2025. Equal Housing Lender.
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