Home Equity Loan vs. HELOC | RadiFi Credit Union Guide
Home Equity Loans vs. Home Equity Lines of Credit: Which Is Right for You in 2025?
With interest rates remaining higher than they’ve been in years, many homeowners are hitting pause on buying their next home—and instead looking for smarter ways to make the most of the one they’re already in.
Whether you’re planning a backyard upgrade, consolidating high-interest debt, or covering unexpected expenses, tapping into your home’s equity with a Home Equity Loan or Home Equity Line of Credit (HELOC) can be a smart financial move.
But which option is right for you? Let’s break it down.
What Is Home Equity?
Home equity is the difference between what your home is worth and what you still owe on your mortgage. The more you’ve paid down—or the more your home has appreciated—the more equity you may have to borrow against.
At RadiFi, we offer two ways to access that equity: a fixed-rate Home Equity Loan or a flexible HELOC.
Home Equity Loan: Best for One-Time Projects
A Home Equity Loan (sometimes called a second mortgage) gives you a lump sum upfront that you repay over a set term with a fixed interest rate. It’s a great fit for:
- Major renovations (think kitchen or roof replacement)
- Debt consolidation
- Medical bills
- Tuition or education expenses
Why homeowners love it: Predictable monthly payments and a stable rate make budgeting easier—especially in a fluctuating rate environment.
HELOC: Best for Ongoing Access
A Home Equity Line of Credit works more like a credit card. You’re approved for a credit limit, and you can borrow as needed over a draw period—typically 5 to 10 years. You’ll only pay interest on the amount you use.
Perfect for:
- Home projects over time (like multi-phase renovations)
- Emergency expenses
- Seasonal or irregular spending needs
Why homeowners love it: Flexibility. Borrow what you need, when you need it—without reapplying.
Why Now Is a Smart Time to Tap Your Equity
In 2025, many homeowners are sitting on record levels of home equity after the past decade of rising real estate values. At the same time, credit card and personal loan rates have jumped, making home equity options a more affordable alternative for:
- Paying off high-interest debt
- Improving home value instead of buying new
- Creating financial breathing room
According to NerdWallet, the average interest rate on credit cards is over 20%, while home equity products often offer much lower rates—even with recent rate hikes.
Why Choose RadiFi?
At RadiFi Credit Union, we make borrowing local, personal, and stress-free. When you borrow with us, you get:
- Fixed or variable rates—you choose what fits your life
- Up to $500 toward closing costs
- Local decisions and friendly service from real people
- Exclusive discounts for direct deposit and membership
Whether you go with a Home Equity Loan or a HELOC, our team is here to walk you through every step.
Ready to Tap Your Equity?
Still unsure which option is right for you? Start with a quick conversation—our lending team will help you explore your options and find the best fit.
All Your Burning Questions Answered
It depends on your needs:
- Choose a home equity loan for a one-time project or when you want a fixed rate and predictable monthly payments.
- Choose a HELOC if you need ongoing access to funds, flexibility, or plan to borrow in stages.
Apply for a Loan Online, and our Lending Team will guide you on the best option for you.
Most homeowners can borrow up to 80% to 90% of their home’s value, minus what they still owe on their mortgage. RadiFi will work with you to determine how much you qualify for based on your equity, credit, and income.
You can use your home’s equity to fund:
- Home improvements or repairs
- Debt consolidation
- Education expenses
- Major purchases or life events
- Emergency expenses
- And more!
It’s your equity—use it your way.
A home equity loan is a lump sum loan with a fixed interest rate and fixed monthly payments. A HELOC (Home Equity Line of Credit) works more like a credit card—you’re approved for a line of credit and can borrow as needed, with a variable interest rate.
RadiFi offers both options—so you can choose the one that best fits your project, budget, and lifestyle. Tap Your Equity Now – Apply Online.
Nope! You can apply for a home equity loan or HELOC with RadiFi even if your first mortgage is with another lender. Apply Online Now.
Yes—but it’s easy to join! If you live, work, worship, or attend school in Duval, Clay, St. Johns, Nassau or Baker County, FL—or just about anywhere in the U.S. through our partnership with the American Consumer Council—you’re eligible.
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