Home equity loan vs. a line of credit

Whether you choose a loan or line of credit, using your home’s equity is a great option for making home improvements or consolidating debt.

HOME EQUITY LOAN. Get your loan in a single distribution just like you do with an auto or personal loan. Typically, you’ll enjoy a fixed interest rate with fixed monthly payments for the life of the loan.

HOME EQUITY LINE OF CREDIT (HELOC). Get your loan as a revolving line of credit that works like a credit card. Borrow up to your maximum credit limit during the “draw” period. As you repay your balance, you can continue to borrow as needed until the “draw” period ends. HELOCs have variable rates with monthly payments that fluctuate as interest rates rise and fall.

Which type of loan is right for you?
If you need funds for a specific reason, know exactly how much you need and don’t expect to borrow more,  a home equity loan might be the right choice. But, if you have several expenses you need to pay for over a longer period of time, and you’re not sure exactly how much money you’ll need, the flexibility of a line of credit might be a better choice.

For help deciding which home equity option is right for you, call 800-772-4000, option 0, or visit your local branch.