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.

At today’s average HELOC rate of 8.88%, which assumes an 80% LTV, borrowing $100,000 on a 10-year repayment term equates to a $1,260.43 monthly payment. (Our calculation accounts for a 10-year draw period with interest-only payments.)

A $75,000 HELOC has inexpensive monthly payments now, and they could become even cheaper in the months to come.