What Type of Property Do You Own?
Secured Trusted Partners
Find the best HELOC rates in just minutes
Draw only what you need, when you need it, up to your credit limit.
HELOCs typically offer lower rates than credit cards or personal loans.
Interest may be tax-deductible when used for home improvements.
Only pay interest on the amount you actually borrow.
From renovations to education to debt consolidation — your choice.
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home's equity. It works similarly to a credit card — you're approved for a maximum credit limit and can borrow as much or as little as you need during the draw period, typically 5–10 years. You only pay interest on the amount you actually borrow, not the full credit limit.
A home equity loan gives you a lump sum with a fixed interest rate and fixed monthly payments. A HELOC, on the other hand, is a revolving credit line with a variable interest rate — you draw funds as needed and only pay interest on what you use. HELOCs offer more flexibility, while home equity loans offer more predictability.
Most lenders allow you to borrow up to 80–85% of your home's appraised value, minus your remaining mortgage balance. For example, if your home is worth $400,000 and you owe $200,000, you could potentially access up to $120,000–$140,000 through a HELOC. Your credit score, income, and debt-to-income ratio also affect your limit.
Most lenders require a minimum credit score of 620, though a score of 700 or higher will typically qualify you for the best rates. Some lenders may accept scores as low as 580 with compensating factors like low debt-to-income ratios or significant home equity.
Under current tax law, HELOC interest may be tax-deductible if the funds are used to buy, build, or substantially improve the home that secures the loan. Interest on funds used for other purposes (such as debt consolidation or personal expenses) is generally not deductible. Consult a tax professional for advice specific to your situation.
The primary risk is that your home serves as collateral — if you can't make payments, you could face foreclosure. Additionally, most HELOCs have variable interest rates, meaning your payments can increase if rates rise. During the repayment period (after the draw period ends), you'll need to pay both principal and interest, which can significantly increase monthly payments.
Getting matched with lenders through our comparison tool uses a soft credit inquiry, which does not affect your credit score. However, when you formally apply with a lender, they will perform a hard credit inquiry, which may temporarily lower your score by a few points. Shopping for rates within a 14–45 day window typically counts as a single inquiry.