Find out whether a loan or line of credit works best for you.
Home equity lines of credit (HELOCs) work differently than traditional loans. Based on your home’s value and the remaining balance on your mortgage, you may qualify for access to a set amount of credit during a period known as the draw period. During the draw period, you can borrow funds as needed up to your available credit limit. Monthly principal and interest payments are required on any outstanding balance. When the draw period ends, you can no longer access additional funds, and repayment of the remaining balance continues according to your loan terms. A traditional home equity loan provides a lump sum with fixed monthly payments that steadily pay down principal and interest over the life of the loan. Use this calculator to compare your options and determine whether a loan or line of credit best fits your needs.