Home Equity Loan vs. Line of Credit

Get the financing you need using the equity in your home.

Whether it's home improvement, debt consolidation, or an unexpected expense - now is the perfect time to unlock your home's equity at a great low rate!

Apply Today       

Finance with a HELOC

Even if you don't currently have a need for cash, an open-ended Home Equity Line of Credit* is a wise move. When you get a Home Equity Line of Credit, you access the ability to draw money, whenever you want, for a period of time. You only pay interest on the amount you borrow. You may borrow money, then pay off the money you borrowed, and borrow again against the line of credit.

What is a home equity line of credit?  

Finance with a Home Equity Loan

If you have need of a specific amount of money, a Home Equity Loan might be for you. A home equity loan allows you to tap into your home's built-up equity, which is the difference between the amount that your home could be sold for and the amount that you still owe.

  • These are available on any single-unit home or rental property
  • Homeowners often use a home equity loan for home improvements, to pay for a new car, or to pay off credit cards. The interest paid is usually tax deductible.
  • This type of loan is sometimes referred to as a second mortgage or borrowing against your home.

Is a home equity loan right for me?  Click here for our current rates.

What's the Difference

Explore the distinct features of our Home Equity Line of Credit and Home Equity Loan to find the perfect fit for your financial needs. Discover the nuances that make each option unique and empower yourself to make the best decision for your future.

Home Equity Line of Credit

  • Variable rate
  • Introductory rate for 60 months
  • Good for those who want available credit all the time 
  • Interest-only payments for the first 10 years
  • Minimum loan amount is $10,000
  • Maximum loan amount is $250,000

Home Equity Loan

  • Fixed rate
  • No introductory rate
  • Good for someone looking to consolidate debt, make a home improvement of which they know the cost, etc.
  • Fixed monthly payments
  • Minimum loan amount is $10,000
  • Maximum loan amount is $250,000 (owner-occupied)


Loans and lines of credit are available for Nebraska and Iowa properties within Cobalt Credit Union's lending area. Loans are subject to approval criteria. Some restrictions apply. Contact a representative for details. Equal Housing Lender.