Compare home equity tax savings with this calculator
Learn if a home equity loan or line of credit is right for you.
What is a home equity loan?
Home equity loans are loans available to existing homeowners aside from their mortgage. You may get extra funds when you need them with a home equity loan or a home equity line of credit, but what sets them apart?
Home equity loan
- A home equity loan is a single lump sum loan with predictable payments.
- It typically has a fixed interest rate.
- It allows you to borrow once, and make monthly payments.
- It's great for helping with single large expenses.
Home equity line of credit (HELOC)
- A home equity line of credit (HELOC) is a pool of money available for flexible spending.
- It typically has a variable interest rate.
- You can pay off and borrow from as needed, similar to a credit card.
- It's great for multiple small expenses over a period of time.
Use this helpful calculator to learn what the tax differences could be between a Home Equity Loan and a HELOC. It’s illustrative and for educational purposes only. Using the [BASIC] tab, simply enter the amount of the loan, interest rate, months to pay off and upfront costs. Using the [ADVANCED] tab, you may enter your tax rate if you wish. The calculator will return details about the tax savings for each type of loan.