Learn the differences to determine which is right for you.

Feature HELOC Home Equity Loan
Access to Funds Allows you to draw funds as needed, revolving Single, upfront lump sum
Interest Rates Variable Rate that fluctuates with the market Fixed Rate
Repayment Varies, accrued interest-only payments based on the amount advanced Set principal and interest payment amortized up to 25 years
Best Use Case Ongoing, variable-cost projects and other future expenses (example: repairing a house over several months) Specific, one-time project (example: remodeling, large debt consolidation)
Pros Only pay interest on the amount used. Flexible access to cash. Fixed, predictable payments. Fit to your budget.
Cons Variable rates mean payments can increase. Pay interest on the total amount immediately. Cannot re-advance funds.

 

Speak with one of our experienced lenders for more information.

Subject to credit approval. Collins State Bank NMLS #405041