$25,000 home equity loan vs. $25,000 HELOC: Which will be cheaper this May?
Will it be cheaper to borrow $25,000 worth of equity with a home equity loan or HELOC this May? Here's what to know.
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Home equity levels in the country hit a record high in 2025 and, according to a March report, the average amount of borrowable equity is over $11 trillion right now. Against this backdrop, withdrawing a relatively small amount such as $25,000 should be relatively simple. Knowing which way to borrow that equity , however, can be less obvious. With options ranging from reverse mortgages to cash-out refinances to home equity loans and home equity lines of credit (HELOCs) , homeowners have a variety of options.
Two of the most affordable, however, are home equity loans and HELOCs. Interest rates on both products have markedly improved in recent years, and with a HELOC, borrowers will be positioned to exploit additional rate drops ahead, thanks to the product's variable interest rate that will change each month. Home equity loans, meanwhile, have fixed interest rates that will provide borrowers with peace of mind, financial security and accurate payment projections.
Start by seeing how much home equity you could borrow here .