Using your home’s value is a smart money move, but you have options for how to borrow that value. If you need a lump sum of money right away, a Home Equity Loan is the right way to borrow against your home. This method involves a fixed interest rate that is paid back in equal monthly installments after you receive lump funds.
If you need an “on-demand” source of money for various or unplanned needs, a Home Equity Line of Credit is a proper fit. Often called a HELOC, this option has a variable interest rate that can go up or down based on market conditions. However, both types of financing offer an affordable interest rate that is lower than credit cards and allow you to use up to 85% of your home’s available value.