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HELOC vs home equity loan: which is better?

Quick answer

A HELOC is a revolving line with a variable rate (~8.5% in 2026) — best for ongoing or unpredictable expenses. A home equity loan is a lump sum with a fixed rate (~9.0%) — best for one-time, predictable expenses like a single renovation or debt consolidation.

More context

A HELOC is a revolving line with a variable rate (~8.5% in 2026) — best for ongoing or unpredictable expenses. A home equity loan is a lump sum with a fixed rate (~9.0%) — best for one-time, predictable expenses like a single renovation or debt consolidation. The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.

For a deeper analysis, use one of the related tools below — they take your specific income, debt, location, and goals as inputs and produce a tailored answer.

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