HELOC vs. Personal Loan.
Before you tap your home equity, compare the true interest cost — and the collateral risk — against a fixed-rate personal loan.
HELOC vs. Personal Loan
True cost comparison — with and without collateral risk
HELOC rates are variable and may rise. This tool shows a current-rate scenario and a +2% stress scenario to illustrate rate risk.
At these inputs, a personal loan costs slightly more in interest but removes your home as collateral — often a meaningful risk reduction.
Rates use prime rate (~7.5%, March 2026) plus credit-score margin for HELOC; published lender ranges for personal loans. Important: Many lenders require 620+ credit to qualify for a HELOC — scores below 620 may be declined or require a different product entirely. This tool models HELOC as a standard amortized loan for a direct comparison; actual HELOCs have separate draw and repayment periods which affect cash flow. Rates quoted by lenders at underwriting. Individual results will vary significantly.
Rate estimates only. Not financial advice.
Actual rates
set by lenders at underwriting.
The Variable Rate Risk
Most HELOCs are tied to the prime rate, which has moved from 3.25% to 8.5% in under two years. The +2% stress scenario in this tool illustrates what a similar rate cycle could cost on your specific balance. Personal loans carry fixed rates — no surprises.
How Rates Are Estimated
HELOC rates use prime rate (7.5% as of March 2026) plus a credit-score-based margin. Personal loan rates reflect observed market ranges from major lenders. Your actual rate will be determined by lender underwriting and will vary — use this as a directional framework, not a quote.
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