Home equity loan options
Discuss your options with a home equity expert
Meet the team
Mark Jacobs
Home Equity Application Specialist
Mark works with members in Northern Michigan and across the state who are exploring home equity lending options. With over 30 years of real estate lending experience and deep roots in Northern Michigan, Mark can help you understand your options and move forward with confidence.
Darlene Papanichola
Home Equity Application Specialist
Darlene works with members across Michigan who are exploring home equity options for home improvements, major expenses, or flexible access to funds. She can help you compare Home Equity Loans and HELOCs, review your goals, and connect you with the right next step.
HELOC vs. Fixed-rate: which is the right home equity loan option for you?
When it comes to tapping into your home’s equity, two popular options are a Home Equity Line of Credit (HELOC) and a Fixed Rate Home Equity Loan. While both allow you to borrow against the value of your home, they are designed for different financial needs. Understanding how each works and their key differences can help you decide which loan option best fits your situation.
2026 Home Equity Special
Save up to $495 on eligible home equity lines of credit.
Put your home’s equity to work.
For eligible new home equity lines of credit.
Fixed-rate home equity loan options
A Fixed-rate home equity loan, also known as a 2nd mortgage, provides you with a lump sum of money upfront, which you repay over a set period of time with fixed monthly payments. This type of loan offers stability and predictability, as both your interest rate and payment schedule remain the same throughout the life of the loan.
Key features of a fixed-rate home equity loan:
- Fixed Interest Rate: Your interest rate is locked in, meaning your monthly payments will stay the same.
- Lump Sum Payout: You receive the entire loan amount upfront, making it ideal for one-time expenses like a major home improvement project, debt consolidation, or a large purchase.
- Predictable Repayment: Because your payments are fixed, it’s easier to budget and plan for repayment over the long term.
A fixed-rate home equity loan might be the better option if you prefer a structured repayment plan and need a specific amount of money for a particular purpose.
Learn more about a Fixed-rate home equity loan at People Driven Credit Union.
Home Equity Line of Credit (HELOC)
A HELOC is a revolving line of credit, similar to a credit card, that allows you to borrow against the equity in your home. With a HELOC, you’re given a credit limit and can borrow as much or as little as you need over time, during a draw period. During the draw period, you only pay interest on the amount you’ve borrowed, and after the draw period, you enter the repayment phase, where you pay back both principal and interest.
Key features of a HELOC:
- Flexible Borrowing: Borrow only what you need when you need it.
- Variable Interest Rate: HELOCs have a variable interest rate, meaning your payments can fluctuate over time.
- Interest-Only Payments: During the draw period, you make interest-only payments, keeping your monthly expenses lower at first.
A HELOC is ideal for ongoing or unpredictable expenses, like home renovations or medical bills, where you want flexibility in how and when you access funds.
Learn more about a Home Equity Line of Credit (HELOC) at People Driven Credit Union.
What’s the difference?
- Borrowing Structure: A HELOC offers flexibility with a revolving credit line, while a Fixed Rate Loan provides a lump sum upfront.
- Interest Rates: HELOCs typically have variable rates, meaning your payments can fluctuate, while Fixed Rate Loans come with a fixed rate, giving you predictable payments.
- Repayment: HELOCs often allow interest-only payments during the draw period, followed by principal and interest payments later. Fixed Rate Loans require both principal and interest payments from the start, providing a clear repayment plan.
Which loan option is right for you?
Choosing between a HELOC and a Fixed-rate home equity loan depends on your financial needs and preferences.
Consider a HELOC if you:
- Need ongoing access to funds for multiple projects or expenses.
- Prefer the flexibility to borrow as needed over time.
- Are comfortable with variable interest rates and the potential for payment fluctuations.
A fixed-rate home equity loan might be a better fit if you:
- Have a specific, one-time expense that requires a lump sum.
- Prefer the stability of fixed monthly payments and a predictable repayment schedule.
- Want to lock in a low interest rate to avoid future rate hikes.
Ultimately, the right loan depends on your unique situation, budget, and goals. If you’re still unsure, we’re here to help!
Explore more about HELOCs or the benefits of a fixed-rate home equity loan. Let People Driven Credit Union guide you in finding the best option to make the most of your home’s equity.
Talk with a home equity specialist
Questions about HELOCs, Fixed Rate Home Equity Loans, Land Loans, or Bridge Loans?
Darlene and Mark can help you compare options, understand what may fit your goals, and walk through what to expect before applying.
Connect with a home equity specialist
You can also call 248-263-4100 to speak with a home equity expert.
Learn more about home equity loans
2026 Home Equity Special
Starting May 26, 2026, People Driven Credit Union members can take advantage of a limited-time Home Equity Special and save on the cost of borrowing. Turn Your Home Equity Into Possibility For a limited time, PDCU will waive closing costs up to $495 on a Home Equity Line of Credit, also known as a HELOC, for a primary residence. A ......Read More
Mortgage Refinance vs. Home Equity Loan: Which Is Right for You?
If you are a homeowner weighing your options to access cash or lower your monthly payment, two paths come up most often: a Mortgage Refinance and a Fixed Rate Home Equity Loan. Both let you tap into the value you have built in your home. Both can save you money or give you access to funds. But they work differently, ......Read More
How to Choose the Best Loan for Your Next Home Project
If you are trying to figure out the best loan for home improvements, you are not alone. Whether you are remodeling a kitchen, replacing windows, upgrading a bathroom, or tackling a long list of home repairs, the right financing option depends on how you will pay for the project and how you want to repay the money. Home improvement loans ......Read More
A Fresh Start for Your Home and Wallet
A Fresh Start for Your Home and Wallet. The weather changes, routines shift, and many people start thinking about ways to improve their homes and finances. If you have been putting off home projects, meaning to revisit your budget, or looking for ways to simplify monthly expenses, this season is a smart time to get back on track. A few ......Read More
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Disclosures
Equal Housing Lender. Federally insured by the NCUA. NMLS #776727. Membership eligibility required. All loans are subject to credit approval and property qualification.
*APR = Annual Percentage Rate. Rates range from 6.90% to 15.40% APR and are based on creditworthiness, loan amount, term, property type, and combined loan-to-value (CLTV) ratio. Minimum loan amount and property requirements apply. Rates are current as of today and subject to change at any time.
This loan is secured by your residence. Failure to make payments may result in foreclosure. Maximum financing available up to 90% CLTV; lower limits may apply based on your credit profile. A typical preferred debt-to-income (DTI) ratio is 43% or less.
3-Day Right of Rescission: For owner-occupied homes, borrowers have the right to cancel the loan within three business days after closing under the Truth in Lending Act.
Tax Deductibility: Interest may be tax-deductible if used for qualified home improvements. Consult your tax advisor for details.
Fixed Rate Home Equity Loan Fees: Fees include credit report, property valuation, title work, flood search, tax tracking, mortgage recording, processing, and closing. Total costs vary by loan amount and generally range from $800 to $1,400 or more depending on loan size and property type. Please request an itemized estimate before applying. Home Equity Loan Options
