A home equity loan allows you to borrow against the equity in your home as a one-time lump sum, giving you a fixed amount of money upfront. Unlike a HELOC, where you draw funds over time, this option provides all the funds at once with a clear repayment plan from the start. Your available equity is simply the difference between your home’s current value and what you still owe on your mortgage.

Home equity loans typically come with a fixed interest rate, which means your monthly payment stays consistent over the life of the loan. There may be upfront costs such as an appraisal, application, or closing fees, depending on the lender and structure of the loan. Because everything is set upfront—loan amount, rate, and term—it’s a more predictable option for borrowers who prefer stability.

Repayment begins right away and is spread out over a fixed term, usually with both principal and interest included in each payment. This makes it a straightforward option for those who want a defined payoff schedule and a clear path to paying down the balance.