Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes.
A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home’s value and pay back in monthly installments.
A home equity line of credit is a variable-rate second mortgage that draws on your home’s value as a revolving line of credit.
The more home equity you have, the higher your net worth rises.