Home Equity Loan vs. a Line of Credit –
Which is right for you?

Home Equity Loans and Home Equity Lines of Credit (HELOC) are great options to borrow against your home’s value to pay for remodeling projects or to consolidate high interest debt.

With a home equity loan you borrow a single lump sum with a fixed interest rate, fixed monthly payment, and a fixed repayment timeline.

HELOCs, on the other hand, come with a variable rate and let you borrow as needed. In fact, they function a lot like a credit card where you borrow when you need the money.

Should you get a home equity loan or a HELOC?

If you want a fixed monthly interest rate and a fixed payment and don’t mind borrowing a lump sum, get a home equity loan. If you don’t mind a variable interest rate and want to borrow as you go, get a HELOC. Just remember that your monthly payment might fluctuate as rates rise or you borrow more.

Both options tend to be less expensive alternatives than other forms of credit and they will both help you access the equity in your home. Premier America has great home equity options to meet your needs. For more information about your home equity options, visit Premier America home equity loans page.

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