HEIL vs. HELOC: Which Is Best for You?

If you’re a homeowner looking to leverage your home’s equity for a major expense, you may be considering a Home Equity Installment Loan (HEIL) or a Home Equity Line of Credit (HELOC). Both options allow you to borrow against your home’s equity, but they work differently. Understanding the differences can help you choose the best option for your financial needs.

A HEIL (Home Equity Installment Loan) allows you to borrow a lump sum of money against the equity in your home.

It typically comes with:

Fixed Interest Rates – Many home equity loans have fixed interest rates, providing predictable monthly payments.
Lump Sum Payment – You receive the full loan amount upfront.
Set Repayment Schedule – Payments are made in fixed installments over a specific term.
Second Mortgage Consideration – If you already have a mortgage, a home equity loan acts as a second mortgage.

A Home Equity Loan is ideal for homeowners who:

Need a large sum of money for a one-time expense (e.g., home renovations, tuition, debt consolidation).
Prefer the stability of fixed monthly payments.

A HELOC functions more like a credit card, allowing you to borrow multiple times from a set credit limit based on your home’s equity.

Key features include:

Variable Interest Rates – HELOCs usually have adjustable rates, meaning your monthly payments may fluctuate.
Revolving Credit Line – Borrow as needed up to your approved limit.
Flexible Withdrawals & Repayments – As you repay, your available credit is replenished, allowing you to borrow again.
Second Mortgage Consideration – Like a home equity loan, a HELOC is considered a second mortgage if you already have a primary mortgage.

A HELOC is ideal for homeowners who:

Need access to funds over time rather than a one-time lump sum.
Want flexibility for expenses like ongoing home improvements, medical bills, or financial emergencies.
Are comfortable with variable payments and interest rates.

Which Option is Right for You?

Feature	HEIL	HELOC
Best for…	One-time large expenses	Ongoing or flexible expenses
Payout	Lump sum upfront	Withdraw funds as needed
Interest Rate	Fixed	Variable
Monthly Payments	Fixed payments	Varies based on usage
Loan Structure	Second mortgage	Revolving credit line
Credit Replenishment	No (one-time loan)	Yes (funds become available as you repay)

Home Equity Rates

Effective Date: Friday June 19, 2026

Term	Rate	APR	Payment
5 years	5.750%	5.750%	$1,420.95	Apply Today
10 years	6.500%	6.500%	$851.62	Apply Today
15 years	7.250%	7.250%	$684.71	Apply Today
20 years	7.500%	7.500%	$604.30	Apply Today

Please note that the interest rate and fees shown here are available to borrowers with an excellent credit history. The actual interest rate and fees available to you will be based on your credit history and may be different than the rates displayed here. The payment amount is based on a Home Equity loan of $75,000. The interest rates and annual percentage rates (APRs) shown above are subject to change without notice. The actual interest rate offered is based on your credit history, product, loan term and the percentage of remaining equity in your home. Your APR will vary based on your final loan amount and actual finance charges. Consult your tax advisor about deductibility. Adequate homeowner’s insurance coverage is required.