$25,000 home equity loan vs. $25,000 HELOC: Which will be cheaper this May?

MoneyWatch: Managing Your Money $25,000 home equity loan vs. $25,000 HELOC: Which will be cheaper this May? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Matt Richardson Matt Richardson Sr. Managing Editor, Managing Your Money Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance. Read Full Bio Matt Richardson April 28, 2026 / 3:30 PM EDT / CBS News Add CBS News on Google Home equity loan borrowing costs should be calculated closely by owners before they apply for the funds. the_burtons/Getty Images 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. Heading into May, however, and with no Federal Reserve rate cut to contend with, borrowers should know which product will be cheaper when withdrawing $25,000: A home equity loan...