That equity you've been building in your home? It's not just a number. It's real financial power you can tap into when life calls for it.

Whether you're dreaming of a kitchen renovation, facing unexpected medical bills, or helping a kid through college, your home equity can help make it happen. But first, let's break down your two main options: a Home Equity Loan and a Home Equity Line of Credit (HELOC).

Home Equity Loan: The Lump Sum

Think of this as the "all at once" option. You get a fixed amount of money upfront with a set interest rate and predictable monthly payments. It's like getting a traditional loan, just with better rates because your home backs it up.

This works best when you know exactly what you need. Say, $30,000 for that kitchen remodel or to consolidate high-interest credit card debt. You'll appreciate knowing your payment amount won't change, making it easier to budget month to month.

HELOC: The Flexible Line

A HELOC works more like a credit card (but with much lower rates). You get approved for a certain amount, then borrow what you need, when you need it, during the "draw period," typically 10 years. You only pay interest on what you actually use, and as you pay it back, you can borrow again.

This flexibility shines when expenses are ongoing or unpredictable. Tuition payments spread across semesters? Home improvements you're tackling room by room? A HELOC lets you access funds as needed rather than taking more than necessary upfront.

The trade-off? Most HELOCs have variable rates, so your payment can fluctuate with market changes.

So Which One Should You Choose?

Ask yourself:

• Do I need a specific amount for one project, or will I have expenses over time?
• Love predictability and structure? Go with a Home Equity Loan.
• Need flexibility and aren't worried about variable payments? A HELOC might be your match.
• Both options typically offer lower interest rates than credit cards or personal loans because your home serves as collateral. That makes them smart tools when used responsibly, but remember, your home is on the line, so borrow only what you can comfortably repay.

Ready to Explore Your Options?

Our lenders at Highpoint Community Bank are here to help you figure out what makes sense for your situation. Bring your recent mortgage statement and proof of income when you visit your nearest branch, or learn more about Home Equity Lines and Loans on our website.