Home equity is simply the part of your home that you own. It’s calculated by subtracting what you owe on your mortgage from your home’s current value.
Over time, your equity grows as:
This growing equity becomes an asset — and one that can help support your financial goals.
A HELOC lets you borrow against your available home equity, giving you a flexible line of credit you can draw from whenever you need it. Many homeowners use a HELOC to:
You choose when to borrow, how much to borrow, and — with our Rate Lock Option — how you want to manage your interest rate.
Start Here.
Subtract your outstanding mortgage balance from your home’s current market value. You can get an estimate using our Mortgage Equity Calculator
Our Home Equity Line of Credit includes a unique Rate Lock Option — so you can borrow against your line and lock in a fixed rate for up to 10 years.
Not sure if a HELOC is right for you? Our team can walk you through personal loans, debt‑consolidation strategies, and other options to help you make the best decision for your situation.
| Feature | HELOC (Home Equity Line of Credit) | Home Equity Loan | Personal Loan (Signature Loan) | Credit Card |
|---|---|---|---|---|
| Best For | Ongoing or unpredictable expenses (home projects, emergencies, tuition, etc.) | One-time large expenses with fixed payoff | Debt consolidation, emergencies, or expenses under ~$30k | Everyday purchases or short-term borrowing |
| How It Works | Revolving line of credit you can borrow from as needed | One lump-sum loan with fixed payments | Lump-sum loan, unsecured | Revolving credit with variable or fixed interest |
| Rate Type | Variable + Fixed Rate Lock Options (lock up to 3 times) | Fixed | Fixed | Often variable; can be high |
| Access to Funds | Borrow as needed; reuse available credit | One-time disbursement | One-time disbursement | Continuous revolving access |
| Collateral Required? | Yes — your home | Yes — your home | No | No |
| Typical Loan Amounts | Depends on your available home equity | Depends on equity | Up to $30,000+ (varies) | Varies by credit limit |
| Terms | Draw period + repayment period | Fixed terms (5–20 years) | Flexible terms (often 12–60+ months) | No set term |
| Payments | Vary based on borrowing; interest-only during draw period | Fixed monthly payment | Fixed monthly payment | Minimum monthly payments that can extend debt |
| Rates Compared to Other Options | Lowest (home-secured) | Low | Medium | Highest |
| Good Credit Required? | Helps, but equity matters most | Helps, but equity matters most | Yes | Yes |
| Best Uses | Home improvements, education, large expenses over time, emergency cushion | Home renovations, major purchases, debt consolidation | Consolidating debt, covering costs without collateral | Everyday spending, short-term needs |
| Risk Level | Moderate (home is collateral) | Moderate (home is collateral) | Low |
