Pros: Home equity loans and home equity lines of credit (HELOC) are two vehicles that let you leverage your home’s value to pay for other expenses like home improvements. As home values have risen in recent years, many homeowners now have more equity than ever, potentially increasing the amount you can borrow.
HELOCs and home equity loans usually have lower interest rates than other loan types, as well as long repayment timelines, both of which help you easily fit the cost of a remodel into your budget.
Learn more about the differences between HELOCs and home equity loans here on our blog.