Category guide
HELOCs & home equity
A HELOC lets you borrow against the equity in your home — as a revolving line of credit or a lump-sum equity loan — usually at a lower rate than unsecured credit because your home secures it.
What home equity borrowing covers
Home equity is the share of your home you actually own — its value minus what you still owe. A home equity line of credit (HELOC) lets you borrow against that share as revolving credit, drawing and repaying as needed. A home equity loan advances it as a one-time lump sum repaid over a fixed term. A second mortgage is a related lump-sum option that sits behind your first.
How rates and limits are set
Because your home secures the debt, rates are lower than an unsecured personal loan or credit card. Lenders cap total borrowing at a percentage of your home's value — commonly up to 65% for a HELOC, or up to 80% combined with your mortgage. A HELOC rate is usually variable and tied to the prime rate.
How to compare and borrow smart
Your home is collateral, so missed payments put it at risk — borrow conservatively. Compare the rate, the credit limit, setup and appraisal fees, and whether the rate is fixed or variable. Use the directory to find HELOC and home equity lenders near you and compare by rating.