--- title: 'Home Equity Agreement vs. HELOC: Which Is Better for You?' description: Home equity agreements have no monthly payments, while HELOCs do. Compare costs, credit score requirements and risks on a $400,000 home. authors: - name: Aly J. Yale role: Contributing Reporter url: https://money.com/author/aly-j-yale/ bio: Aly J. Yale is a freelance finance journalist with deep experience covering mortgages, real estate and the housing market, as well as investing, lending and retirement topics. She has paid off her student loans, bought two houses, and traveled to seven different countries with her two young sons all through smart money management. For Money, she has researched and written many best of rankings in the housing and mortgage space, including reverse mortgages, VA loans and home equity. Her work in The Wall Street Journal, U.S. News & World Report, Experian, Fortune, Business Insider, CBS and Money.com. education: Texas Christian University at_money_since: 2020 articles: 108 covers: - Housing - Banking - Business - Career Advice - Credit - Identity Theft - Insurance - Loans - Mortgages - Personal Finance - Professional Services - Retirement also_seen_in: - The Wall Street Journal - Business Insider - Yahoo Finance - US News & World Report - CBS social: - https://twitter.com/AlyJwriter - https://www.linkedin.com/in/alyjyale/ editors: - name: Leslie Cook role: Editor, Real Estate url: https://money.com/author/leslie-cook/ bio: Leslie Cook is Money’s lead real estate editor covering trends in the housing market, mortgage rates and real estate. She also writes about home renovation trends and tips. education: Bryn Mawr College, BA History certifications: Certified Personal Finance Counselor at_money_since: 2019 articles: 800 covers: - Housing - Banking - Credit - Economy and Politics - Identity Theft - Insurance - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Taxes social: - https://twitter.com/LeslieLCook - https://www.linkedin.com/in/leslie-cook-9829b9198/ published: '2026-10-29T14:18:58.000Z' modified: '2026-10-29T14:20:41.000Z' section: Housing word_count: 881 canonical: https://money.com/home-equity-agreement-vs-heloc-which-is-better/ type: Article source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Home Equity Agreement vs. HELOC: Which Is Better for You?](https://img.money.com/2026/10/Explainer-home-equity-vs-HELOC.jpg?quality=85&w=1012&h=569&crop=1) ## Our Partners ![Apply Now](https://s3.consumersadvocate.org/prd/image/image/26686/medium_6e2aea0b-012e-42df-841e-6c900b160674.png) Our Partner [Apply Now](https://money.com/go/aaaec6f4afc9?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776923&pmeta=p129-c541-u60861&ptid=689630208&ptoken=0cbacdb37d9398d1b660502efadf49c7&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215) **Unlock the value already in your home** - Put your home’s equity to work for you - Predictable payments with fixed interest rates - Guidance from experienced Home Loan Experts - Fund renovations, upgrades, or major expenses * * * ![Apply Now](https://s3.consumersadvocate.org/prd/image/image/24027/medium_c3f1f3ef-10f7-4f68-a375-56722a30d265.png) Our Partner [Apply Now](https://money.com/go/3adb9982b05e?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776922&pmeta=p129-c541-u60861&ptid=689630208&ptoken=b5e0e2ea7b15b90a1f28bf011f6ce622&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215) **Home loan experts analyze the best home equity loan lenders** - Free to check mortgage offers today - Secure process & personalized recommendations - Explore mortgage offers on LendingTree's network - Terms and conditions apply  * * * ![Apply Now](https://s3.consumersadvocate.org/prd/image/image/38131/medium_ca5d591d-a202-4851-8c3c-0c82f7653715.webp) Our Partner [Apply Now](https://money.com/go/c374587a6c3f?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776926&pmeta=p129-c541-u60861&ptid=689630208&ptoken=6eb1398a52db8122093b8dd395ec025b&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215) **Find a home equity option that works for you** -   Unlock cash from within your home -   Online loan application process -   Turn your home equity into the cash you need  -   Over $100 Billion Funded. 21 Years in Business * * * ![Apply Now](https://s3.consumersadvocate.org/prd/image/image/38901/medium_de533b52-e561-416c-ae3d-1655186a6b0c.webp) Our Partner [Apply Now](https://money.com/go/6b3fee49a39c?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776930&pmeta=p129-c541-u60861&ptid=689630208&ptoken=f89142af17468bd8418c39db5a99c1be&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215)  **Unlock Home Equity With a Reverse Mortgage** -  Keep your current low-rate first mortgage -  A smart option for today’s higher-rate market -  Explore reverse mortgage options—no obligation to apply. Get a lump sum of cash to meet your needs * * * ![Apply Now](https://s3.consumersadvocate.org/prd/image/image/12788/medium_781d6fd9-f22d-402e-ad10-43d1d65abd9a.webp) Our Partner [Apply Now](https://money.com/go/01c583e2948d?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776927&pmeta=p129-c541-u60861&ptid=689630208&ptoken=aa1e5c7bc9252a577f939dd16f871285&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215) **No monthly payments required** - Borrow up to $600,000 - Repay when it's convenient for you - Online quote tool won't hurt credit - Apply entirely online * * * ![Apply Now](https://s3.consumersadvocate.org/prd/image/image/26427/medium_1fe6c0f8-17fd-4d99-ad33-3591a84cd0a9.png) Our Partner [Apply Now](https://money.com/go/7e8d3b4fe025?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776925&pmeta=p129-c541-u60861&ptid=689630208&ptoken=b1181f02f1449bb81ae7fd533c30652a&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215) **Flexible terms, redraw up to 100%, borrow up to $750K** - Approval in 5 minutes. Funding in as few as 5 days. - Use to consolidate debt or finance your next project - 100% digital app & online appraisal - Good/Excellent credit * * * ![Apply Now](https://s3.consumersadvocate.org/prd/image/image/18562/medium_fae612dc-d24f-4504-8c15-0082da097a5a.png) Our Partner [Apply Now](https://money.com/go/227b74e9cbdc?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776924&pmeta=p129-c541-u60861&ptid=689630208&ptoken=4dc26216ea318b74510d1821d3342692&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215) **FICO Scores 580-679. Access Your Home's Equity Today** - Pay off higher interest rate credit cards, Pay college tuition - Take Advantage of No Appraisal Fee for Heloc & Cash-Out Refi - Home Improvement, Buy a Vacation Home - 311k+ positive reviews, A rating from the BBB * * * ![Apply Now](https://s3.consumersadvocate.org/prd/image/image/38111/medium_364876b0-fa54-438d-9f5c-c07be19aa4b6.webp) Our Partner [Apply Now](https://money.com/go/75b354d92f24?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776928&pmeta=p129-c541-u60861&ptid=689630208&ptoken=07562bc87f393e8fd9521e3274a2f79f&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215) **Get up to $500K cash–no loan** - No monthly payments & a 30 year term - Keep current equity, share appreciation - If home value drops, Unison shares loss - The industry pioneer since 2006 * * * ![Apply Now](https://s3.consumersadvocate.org/prd/image/image/40428/medium_9af6e485-9ed0-4512-9f4c-72a6ee4f031a.webp) Our Partner [Apply Now](https://money.com/go/1037854f19be?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776936&pmeta=p129-c541-u60861&ptid=689630208&ptoken=6312e3d5875ebbf1e29bf952fbc20a24&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215) **Unlock the power of your home's equity** - Access your home's equity without refinancing - Turn the equity in your home into the cash you need - 100% digital application with dedicated loan officer support - No Cash due at closing * * * ![Apply Now](https://s3.consumersadvocate.org/prd/image/image/39003/medium_d35780ce-bb82-47c7-988b-df11957f84d3.webp) Our Partner [Apply Now](https://money.com/go/a4d5f26b767d?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776933&pmeta=p129-c541-u60861&ptid=689630208&ptoken=ed54a4c351f14706d8df74d4f50f0b81&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215) **Tap into your home equity** - Unlock competitive offers from top lenders - Fund your next project or pay down debt - Check your options without impacting your credit - Fast, simple process from first click to finish line ## Key Takeaways - Home equity agreements pay a lump sum for a share of your home's future value with no monthly payments; HELOCs have monthly payments at mostly variable interest rates. - Per Hometap's calculator, a 10% stake in a $400,000 home costs $155,443 at settlement after 10 years of 8% annual appreciation. - Some home equity sharing companies accept credit scores as low as 500; most HELOC providers require minimums of 620 to 680. ## What is the difference between a home equity agreement and a HELOC? A home equity agreement involves selling a portion of your future home equity to an investor for a lump sum. Meanwhile, a HELOC (home equity line of credit) works like a credit card, letting you borrow against your home equity over time. Home equity agreements have no monthly payments or interest. HELOCs, by contrast, include both, though what you pay depends on how much you withdraw. Home equity agreements tend to be easier to qualify for than HELOCs. Some home equity investment companies accept credit scores as low as 500, while most HELOC providers require a minimum score between 620 and 680. ## Compare Home Equity Loans Rates Today! ![VIEW RATES](https://s3.consumersadvocate.org/prd/image/image/26686/medium_6e2aea0b-012e-42df-841e-6c900b160674.png) Our Partner [VIEW RATES](https://money.com/go/19cc32582d4c?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776942&pmeta=p129-c541-u59460&ptid=689630213&ptoken=029b2433b9bd1c04acff949243eabaf4&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215) ![VIEW RATES](https://s3.consumersadvocate.org/prd/image/image/26427/medium_1fe6c0f8-17fd-4d99-ad33-3591a84cd0a9.png) Our Partner [VIEW RATES](https://money.com/go/0588a695e566?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776944&pmeta=p129-c541-u59460&ptid=689630213&ptoken=5299b262860840aac480f18369f94367&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215) ![VIEW RATES](https://s3.consumersadvocate.org/prd/image/image/18562/medium_fae612dc-d24f-4504-8c15-0082da097a5a.png) Our Partner [VIEW RATES](https://money.com/go/f00622bb41c8?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776943&pmeta=p129-c541-u59460&ptid=689630213&ptoken=5dc68562551ed5edb3bf9255e1139fe7&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215) ![VIEW RATES](https://s3.consumersadvocate.org/prd/image/image/38131/medium_ca5d591d-a202-4851-8c3c-0c82f7653715.webp) Our Partner [VIEW RATES](https://money.com/go/1729e5f839b2?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776945&pmeta=p129-c541-u59460&ptid=689630213&ptoken=e09efa9febf775f68dc69ded0cc456b6&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215) ![VIEW RATES](https://s3.consumersadvocate.org/prd/image/image/38111/medium_364876b0-fa54-438d-9f5c-c07be19aa4b6.webp) Our Partner [VIEW RATES](https://money.com/go/307fb00cb283?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F&bidid=4263776947&pmeta=p129-c541-u59460&ptid=689630213&ptoken=20906ca939c43622b00b103b4a307022&ua=Mozilla%2F5.0+AppleWebKit%2F537.36+%28KHTML%2C+like+Gecko%3B+compatible%3B+ClaudeBot%2F1.0%3B+%2Bclaudebot%40anthropic.com%29&zip=43215) ## How does a home equity agreement work? With a [home equity agreement](https://money.com/what-is-a-home-equity-agreement/), you sell a portion of your home’s future value in exchange for an upfront lump-sum payment. There are no monthly payments required, but you must “settle” the agreement by a certain date — usually within 10 to 30 years, depending on the home equity investor. Upon settlement, you will owe the investor an agreed-upon share of your home’s value at that time. If the home has appreciated significantly, you could owe the investor much more than you initially borrowed. Home equity agreements often include an initial service fee and upfront costs for appraisals, notary services and more. These are typically deducted from your initial payment amount. ## How does a HELOC work? A [HELOC](https://money.com/heloc-home-equity-line-of-credit/) allows you to turn a portion of your home equity into a credit line. You can withdraw money from the line as needed throughout the HELOC’s “draw period,” which usually lasts 10 years. With HELOCs, you usually pay interest only on what you’ve withdrawn until the draw period is up. After that, you’ll make full principal-and-interest payments for the rest of the term (typically another 20 years). One benefit of HELOCs is that they let you withdraw funds, repay them and withdraw again up to a set limit. This limit is usually 80% to 90% of your home’s current value, minus any existing mortgage balance you have. ## Which costs more on a $400,000 home? It’s impossible to compare the costs of home equity agreements and HELOCs exactly, because many variables are involved. With a home equity agreement, the cost depends on the investor you choose and how much equity you sell. The following examples are for illustrative purposes. ### Home equity agreement Say you sell a 10% stake in your $400,000 home to equity investment company Hometap, which caps what it can receive at an equivalent of an 18.5% annual interest rate. In this example, you would owe 18% of your home’s value if you settled up at the end of your 10-year agreement. Here’s what that would cost if your home value depreciated by 4% or 8% annually, didn't change in value or appreciated 3.25% or 8% annually by the end of the agreement. Home equity sharing agreement sample repayment | Annual change | 8% depreciation | 4% depreciation | 0% change | 3.25% appreciation | 8% appreciation | | --- | --- | --- | --- | --- | --- | | Home value | $368,000 | $384,000 | $400,000 | $550,758 | $863,570 | | Amount owed to Hometap (not including upfront fees) | $66,240 | $69,120 | $72,000 | $99,136 | $155,443 | _*This example is for illustration purposes only. Amounts are based on Hometap's pricing calculator.*_ ### HELOC The cost of a HELOC, on the other hand, varies widely based on how much you withdraw and your interest rate. Most HELOCs have variable interest rates that can change over time, which means your monthly payment and total costs can change, too. However, some lenders offer fixed-rate options. To show how a HELOC's costs add up, here's a hypothetical example using a fixed interest rate. Say you take out a $40,000 fixed-rate HELOC at 8.25% with a 10-year draw period and a 20-year repayment period. If you borrowed the full amount upfront, you would pay about $114,800 over the 30-year term, including about $74,800 in interest. HELOC repayment example | Loan phase | Draw period (years 1-10) | Repayment period (years 11-30) | Total | | --- | --- | --- | --- | | Monthly payment | $275 | $341 | NA | | Total paid | $33,000 | $81,798 | $114,798 | | Interest paid | $33,000 | $41,798 | $74,798 | _*This example is for illustration purposes only. Amounts are based on a hypothetical fixed 8.25% interest rate, with no fees, and on withdrawing the full $40,000 at the start of the draw period.*_ Variable-rate HELOCs work differently. Lenders typically start with the prime rate, then add a margin to set your starting rate. If the prime rate rises, your HELOC rate would likely rise, too. This is part of what makes calculating a variable-rate HELOC's long-term costs difficult. ## How do they compare with a home equity loan and a reverse mortgage? Both [home equity loans](https://money.com/heloc-vs-home-equity-loan) and [reverse mortgages](https://money.com/what-is-a-reverse-mortgage/) are alternative ways to turn your home equity into cash. With a home equity loan, you take a lump-sum payment equal to a portion of your equity, which you can use for any purpose. You then pay it back monthly, plus interest, over 5 to 30 years. Reverse mortgages are only for homeowners aged 62 or older (for government-backed ones, or 55 or older for some private reverse mortgages). As their name suggests, they’re like mortgages, but in reverse. Instead of you paying the lender, the lender pays you out of your home equity. You can choose to get payments monthly, as a lump sum or as a credit line. You repay the loan when you permanently move away, sell your house or pass away. ## Which fits your situation? Whether a [home equity agreement](https://money.com/best-home-equity-sharing-companies/) or [HELOC](https://money.com/heloc-home-equity-line-of-credit/) is best depends on your situation and goals. You should: **Choose a HELOC if …** You’re not sure how much money you need to borrow or you need extended access to cash over time; you’re prepared to make monthly payments; and you can handle the unpredictability of a variable interest rate. **Choose a home equity agreement if …** You need a lump sum of cash but can’t take on monthly payments. Just make sure you’re prepared for the large payment you will owe at the end of the agreement. ## Renovate and renew your home with the power of a Home Equity Loan ### Work with a licensed Rocket Mortgage (NMLS #3030) representative in your state today. [Apply Now](https://money.com/pr/f6da3690dbd8?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F) ## Home equity sharing vs. HELOC FAQS ### What are the disadvantages of home equity agreements? Home equity agreements can cost you much more than you borrowed if your home appreciates significantly by the time you settle up. They can also come with hefty upfront fees. ### Is it better to get an HEA than a HELOC? A home equity agreement (HEA) may be better than a HELOC if you need a lump sum of money and can’t afford monthly payments. However, a HELOC may be better if you’re not sure how much you need to borrow, need ongoing access to funds, and can handle monthly payments. ### Is a home equity agreement worth it? A home equity agreement may be worth it if you need to access your home equity but don’t want to or can't take on monthly payments. Just make sure you can handle a potentially large lump-sum payment at the end of your settlement term. ![](https://s3.consumersadvocate.org/prd/image/image/26686/medium_6e2aea0b-012e-42df-841e-6c900b160674.png) Use your Home Equity to finance your goals with Rocket Mortgage (NMLS #3030) [Apply Now](https://money.com/pr/v73b3279b8dc?ap_referrer=%2Fhome-equity-agreement-vs-heloc-which-is-better%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/home-equity-agreement-vs-heloc-which-is-better/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Housing", "item": "https://money.com/housing/" }, { "@type": "ListItem", "position": 3, "name": "Home Equity", "item": "https://money.com/home-equity/" }, { "@type": "ListItem", "position": 4, "name": "Home Equity Agreement vs. HELOC: Which Is Better for You?" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/home-equity-agreement-vs-heloc-which-is-better/#webpage", "url": "https://money.com/home-equity-agreement-vs-heloc-which-is-better/", "name": "Home Equity Agreement vs. HELOC: Which Is Better for You?", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2026-10-29T14:18:58.000Z", "mainEntity": { "@id": "https://money.com/home-equity-agreement-vs-heloc-which-is-better/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/home-equity-agreement-vs-heloc-which-is-better/#breadcrumb" }, "dateModified": "2026-10-29T14:20:41.000Z" }, { "@type": "Article", "headline": "Home Equity Agreement vs. HELOC: Which Is Better for You?", "articleSection": "Housing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2026/10/Explainer-home-equity-vs-HELOC.jpg?quality=85", "width": 2880, "height": 1920 } ], "author": [ { "@type": "Person", "name": "Aly J. 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Her work in The Wall Street Journal, U.S. News & World Report, Experian, Fortune, Business Insider, CBS and Money.com.", "image": "https://img.money.com/2020/06/AJY-Headshot.jpg?quality=85&w=640&h=640&crop=1", "email": "alyjyale@gmail.com", "jobTitle": "Contributing Reporter", "alumniOf": "Texas Christian University", "subjectOf": [ { "@type": "WebPage", "url": "https://www.wsj.com/", "name": "The Wall Street Journal" }, { "@type": "WebPage", "url": "https://www.businessinsider.com/", "name": "Business Insider" }, { "@type": "WebPage", "url": "https://finance.yahoo.com", "name": "Yahoo Finance" }, { "@type": "WebPage", "url": "https://www.usnews.com", "name": "US News & World Report" }, { "@type": "WebPage", "url": "https://cbsnews.com", "name": "CBS" } ], "sameAs": [ "https://twitter.com/AlyJwriter", "https://www.linkedin.com/in/alyjyale/" ], "worksFor": { "@id": "https://money.com/#organization" } } ], "publisher": "https://money.com/#organization", "datePublished": "2026-10-29T14:18:58.000Z", "description": "Home equity agreements have no monthly payments, while HELOCs do. Compare costs, credit score requirements and risks on a $400,000 home.", "abstract": "Home equity agreements have no monthly payments, while HELOCs do. Compare costs, credit score requirements and risks on a $400,000 home.", "@id": "https://money.com/home-equity-agreement-vs-heloc-which-is-better/", "inLanguage": "en-US", "dateModified": "2026-10-29T14:20:41.000Z", "editor": [ { "@type": "Person", "name": "Leslie Cook", "url": "https://money.com/author/leslie-cook/", "@id": "https://money.com/author/leslie-cook/#author", "description": "Leslie Cook is Money’s lead real estate editor covering trends in the housing market, mortgage rates and real estate. 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