Updated June 21, 2026
Fixed lump sum or flexible line
Both products borrow against the equity in your home, but they behave differently. A home equity loan is a one-time lump sum at a fixed rate: you know the payment on day one and it never changes. A HELOC is a revolving line with a variable rate, so you draw what you need and the payment moves as the index moves.
To compare them fairly, this tool amortizes the same amount over the same term at each rate, then shows the monthly payment and the total interest for both. The fixed loan gives you certainty. The HELOC often starts cheaper but carries the risk that the rate climbs, since most HELOC rates float with the prime rate published by the Federal Reserve.
Neither answer is universal. A borrower who will clear the balance in two years may happily take the variable line, while someone budgeting for fifteen years of payments may sleep better with the fixed loan. Match the product to your timeline, not just to the headline rate, and confirm fees and rate caps with the lender.
Not sure how much to borrow?
Check your available equity before you commit to either option.