Use the equity in your home to consolidate debt, make home improvements, or take that dream vacation! There are several ways to utilize your home’s value, and the right home equity option depends on your situation and needs.

A home equity loan will allow you to borrow a fixed amount and have a fixed payment at a fixed rate for a set number of months. This option can be helpful for paying off debt and having a date in mind for when that debt will be paid off.

A home equity line of credit will allow you to draw down funds within your limit as needed over the next 10 years and make monthly payments when funds have been borrowed. This option can be helpful when doing a project that may not have an exact total or if you’d like to cover an expense and keep the line of credit open for unexpected expenses of the next 10 years.

Revolving credit occurs when a lender grants a borrower money up to an approved limit. It remains available even as the balance is being paid. The borrower may borrow up to their credit limit as needed and may reuse their loan again after the balance has been paid down. Examples of revolving credit include: Credit Cards and Lines of Credit.