Not only will qualifying for that high of a credit line be difficult for most borrowers, but even if you're approved, you're likely to pay a high interest rate to gain access. With credit card interest rates recently surging to a record 23%,

HELOC rates again came in lower this week, with the the $30,000 home equity line of credit dropping to an average of 8.36 percent — closing out 2024 with a record low for the year, according to Bankrate’s national survey of lenders. In contrast, the average $30,000 home equity loan rate remained the same, at 8.41 percent.

Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes. A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home’s value and pay that amount back in monthly installments.

There's a strong case to be made for choosing a home equity loan over a HELOC this month. Here's what to consider.

The more equity (value) you’ve built up in the home, the more money you can access via a HELOC. A HELOC allows you to borrow exactly what you need, typically for lower rates than other forms of credit,