Side-by-Side Comparison
HELOC vs Home Equity Loan
Both products tap your home equity, but they work very differently. Use the calculator below to compare payments and total interest for your specific situation.
HELOC vs Home Equity Loan Calculator
Compare side-by-side payments and total interest for both products.
$10,000$500,000
HELOC
Draw period payment$546.88/mo
Repayment payment$662.78/mo
Total interest$149,693
Home Equity Loan
Fixed monthly payment$695.26/mo
Payment never changesYes
Total interest$50,147
Summary Comparison
Interest Difference
$99,546
HE Loan saves
Initial Monthly
HELOC lower
by $148.38
Rate Stability
HE Loan
Fixed for life
Detailed Feature Comparison
| Category | HELOC | Home Equity Loan | Notes |
|---|---|---|---|
| Rate Type | Variable - changes with prime rate | Fixed for entire loan term | Loan wins for predictability; HELOC wins if rates fall |
| How Funds Are Delivered | Draw as needed up to credit limit | Lump sum at closing | HELOC is more flexible for ongoing or uncertain costs |
| Interest Charged On | Only what you draw | Full balance from day 1 | HELOC can save money if you don't use the full amount |
| Monthly Payment Stability | Changes every month | Identical every month | Fixed payments make budgeting simpler |
| Closing Costs | Low to none (many lenders) | 2-5% of loan amount | HELOC often has lower upfront costs |
| Reusability | Revolving - repay and redraw | One-time disbursement only | HELOC acts as an ongoing financial tool |
Which One Should You Choose?
Choose a HELOC if:
- +You have ongoing or unpredictable expenses (ongoing renovations, tuition payments)
- +You may not use the full amount and want to pay interest only on what you draw
- +You want a revolving credit line you can use repeatedly over 10 years
- +You expect interest rates to stay flat or decline
Choose a Home Equity Loan if:
- +You have a specific, known expense and need the full amount upfront
- +You want a fixed payment you can budget around with certainty
- +You are in a rising rate environment and want to lock in today's rate
- +You prefer the discipline of a fixed repayment schedule over a revolving line