If you're a borrower determined to take advantage of the lowest interest rate possible then it makes sense to pursue a HELOC this November instead of a home equity loan – despite the latter have the slightly lower interest rate.

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.)

Deciding between home equity loan vs HELOC? Learn the difference between the two and when you may want to choose one over the other.

What Is a Home Equity Loan? As the name implies, a home equity loan is secured by the equity you have accumulated in your home. With every payment you make on your mortgage, you b