Find out whether a loan or line of credit works best for you.
Home equity lines of credit work differently than other loans. Based on your home’s value and the amount left on your mortgage, you’re given access to a certain amount of money for a period of years, called the draw period. You pay interest charges only as you use the money. There are no principal repayment requirements during this time. But when the draw period ends, the repayment obligations begin. A loan features fixed payments each month in which you steadily pay down principal and interest. Use this calculator to draw your own conclusions about whether a loan or line of credit is best.