Home equity loans, home equity lines of credit (HELOCs), and cash-out refinances use a borrower's home as collateral, which means these products put the borrower's home at risk if the debt is not repaid.
October 01, 2025
high
temporal
General lending characteristic of home equity products.
Variable-rate HELOCs generally adjust to changes in short-term interest rates more rapidly than fixed-rate home equity loans, which tend to change more gradually.
October 01, 2025
high
temporal
Contrast between typical rate-reset behavior of variable-rate versus fixed-rate home equity products.