Home equity loans and HELOCs for home improvement
Some homeowners use a home equity loan or HELOC to pay for renovations and repairs. Either one is secured by your home, which could be at risk if you don't make the payments. Here's what to compare and how checking your options with Lendara works.
What to expect using home equity for a project
- Get written quotes before you choose an amount. A HELOC lets you draw as the contractor is paid in stages; a home equity loan pays out a lump sum up front.
- A personal loan is another option for a smaller project, and it isn't secured by your home. Compare the total cost and the risk of each.
- How much you can borrow depends on your home's value, your existing mortgage balance and each partner's own criteria, which usually include your credit history and income.
- A home equity loan or HELOC is secured by your home. If you don't make the payments, you could lose your home, so make sure the payment fits your budget before you apply.
Estimate a home equity loan payment
Enter an amount, a term and an APR to see an illustrative fixed monthly payment and total interest.
Estimates only, based on the numbers you enter. Not an offer of credit. Lendara is not a lender.
How checking your options works
When you check your options for home equity for a home improvement project through Lendara, you answer a few questions about your home, your current mortgage, your income and the amount you want.
If participating lenders have options for you, you can compare them side by side: APR, fees, closing costs, whether the rate is fixed or variable, and the term. Nothing is accepted until you choose an offer.
If you decide to apply, the lender reviews your application, may check your credit and may require an appraisal of your home, and decides whether to approve you and on what terms. Lendara doesn't make that decision.
Frequently asked questions
Is a HELOC or a home equity loan better for a renovation?
It depends on how the project is paid for. A HELOC suits costs that come in stages, often at a variable rate; a home equity loan gives you a fixed amount with fixed payments. Both are secured by your home.
What if my project costs more than planned?
Build a buffer into your quotes and only borrow what you can repay comfortably. With a HELOC you may be able to draw more within your limit; with a loan you may need to borrow again.
Is Lendara a lender?
No. Lendara is a free marketplace that connects you with participating lenders. We don't make credit decisions or lend money.
Related guides
- HELOC vs. Personal Loan for a Home Project
How a HELOC and a personal loan compare for paying for a renovation or repair: collateral, rate type, fees, timing and what to weigh before you borrow.
- Home Equity Loan vs. HELOC: What to Compare
How a home equity loan differs from a HELOC, what it means that your home secures the debt, and the details worth comparing before you borrow against your equity.
- How a HELOC's Draw and Repayment Periods Work
What happens during a HELOC's draw period and repayment period, why the payment can change, and the questions worth asking before you open a home equity line of credit.
Lendara is not a lender and does not make credit decisions. Lendara is a free online marketplace that connects you with participating lenders, who set their own eligibility rules, rates, fees and terms. Lendara may receive compensation from partners, which may affect which offers appear and their order. Lendara is a marketplace, not a lender, and does not make credit decisions. Home equity loans and HELOCs are secured by your home, and you could lose your home if you do not repay. Rates and terms vary by lender and are determined by the lender; HELOC rates may be variable. Applying with a lender may result in a hard inquiry and may require an appraisal. We do not guarantee approval, rates or savings.