If you’re a homeowner and would rather work with your own bank or financial institution, you can choose to apply for a home equity loan or home equity line of credit. This can be an ideal solution if you have a lot of equity in your home and would rather borrow against it.
A home equity loan works similarly to a personal loan with fixed interest rates, repayment terms, and consistent monthly payment options.
A home equity line of credit works more like a credit card. It’s a line of credit you can borrow against and typically has a variable interest rate. That means your payments could increase or decrease depending on your credit account balance and shifting interest rates.
Keep in mind that most banks will allow you to borrow up to 85% of your home’s value.