The Core Difference
A Home Equity Loan gives you a lump sum at a fixed rate — predictable payments, ideal for a single large expense. A HELOC (Home Equity Line of Credit) is a revolving line you draw from as needed — flexible, but with variable rates.
Home Equity Loan: Best For
- ✓Home renovation with a known total cost
- ✓Debt consolidation (replacing variable-rate debt with fixed)
- ✓One-time large purchase (car, education, medical bills)
- ✓Borrowers who want payment certainty
HELOC: Best For
- ✓Ongoing projects (renovation over several years)
- ✓Emergency fund backup
- ✓Business expenses with variable timing
- ✓Borrowers comfortable with variable rates
Rate watch: As of 2025, HELOC rates are typically 1–2% higher than home equity loan rates due to variable-rate risk. With rates still elevated, many borrowers are preferring the certainty of fixed home equity loans.
Tax Implications
Interest on both products may be deductible if used for home improvement (IRS Publication 936). Interest is NOT deductible if used for personal expenses (debt consolidation, vacations, etc.). Always consult your tax advisor.
Rise Up Lending Home Equity Loans
We offer fixed-rate home equity loans from 6.5% APR, $10,000–$250,000, up to 85% LTV. Minimum score 620. No prepayment penalty. Funded in 3–7 business days.
Elena Vasquez, CFP®
Chief Lending Officer
15 years consumer finance · Former VP Wells Fargo