Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes. A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home's value and pay that amount back in monthly installments.

Like a home equity loan, a Heloc is a type of debt based on how much value you’ve built in your house. However, a Heloc is a revolving line of credit rather than a lump sum loan. Most Helocs are divided into two parts:

HELOC rates could fall in 2026 if the Fed rate-cutting trend continues, but there are other possibilities, too.

How does a home equity loan work? First, it’s important to understand that the term home equity loan is simply a catchall for the different ways the equity in your home can be used to access cash. The most common types of home equity loans are fixed-rate ...

HELOCs, or home equity lines of credit, give homeowners a way to leverage the growing value of their house for anything from renovations to college tuition — and enjoy 10 years of interest-only payments. Plus, unlike with a home equity loan, they only ...

Banks are pitching home-equity lines of credit as a cheaper form of borrowing as Federal Reserve rate cuts could lower HELOC rates to the mid-6% range, according to one estimate An increasing number of homeowners are tapping the equity in their homes for ...

CHICAGO (WLS) -- Here's a quick tip about a tool, which could help tackle high-interest rate credit card debt. According to consumer experts, home equity could help. Credit card interest rates average more than 22 percent, but a home equity line of credit ...

Understand how a Heloc allows you to borrow against your home’s equity, its benefits and risks and how it compares to other financing options