What the market trends are: With current HELOC rates slightly lower, they could be the cheaper option for short-term borrowing, but rising rates could make them more expensive over time. If you prefer stability, a home equity loan's fixed rate might be worth the extra cost.

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.

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,

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