Summer is the season of home improvement. It’s the best time to tackle projects like landscaping, roof improvements, or upgrading your kitchen. To bring a project to life, many homeowners turn to their home’s equity. Two of the most popular options are home equity loans and home equity lines of credit (HELOCs). Which one better fits your summer plans?

What Is A Home Equity Loan?

A home equity loan is a one-time, lump sum loan based on the equity you’ve built in your home. It comes with a fixed interest rate and predictable monthly payments. The lump sum you can borrow is based on the current market value of your home and other factors like your credit score, income, and how much you owe on your mortgage.

This option is best for homeowners who:

• Have a clear project budget
• Prefer stable, consistent payments
• Are tackling a single, large project – like a roof or major remodel

What Is A HELOC?

A home equity line of credit or HELOC works more like a credit card. It’s secured by your home’s equity. Like a credit card, you can borrow what you need, when you need it – during a draw period. Typically, HELOCs have variable interest rates, which means your rates can change over time.

This option is best for homeowners who:

• Have ongoing or multi-phase projects
• Want flexibility in how much they borrow
• Aren’t sure of the total cost upfront.

Key Differences

Which Is Better For Summer Projects?

It depends on the project. If you are completing one major upgrade, a home equity loan will better suit your needs. If you are making multiple small improvements or see the project evolving down the road, a HELOC may be better. Here are some examples:

Best for home equity loans (cost is well-defined and a fixed cost project)

• Deck or patio build
• Pool installation
• Roof replacement
• Fence replacement or installation
• Gutter replacement or repair

Best for HELOCs (flexible, small projects or projects that evolve)

• Landscaping overhaul
• Exterior painting or siding refresh
• Kitchen refresh (not full remodel)
• Smart home upgrades (thermostats, lighting, security)
• Irrigation system
• Home office refresh

Both Home Equity Loans and HELOCs can be great tools for funding summer projects. The best choice comes down to how predictable your project is—and how much flexibility you want along the way.