It depends on your goals. A HELOC could be better than a home equity loan if you want a source of funds you can access on an as-needed basis. The line-of-credit arrangement also means you’ll only pay interest on the amount you borrow, at least initially. With a home equity loan, you’ll be responsible for interest on the entire loan balance, even if you don’t use all the funds. If you’re planning to cover a significant but indeterminate expense in the near future and want to have a pool of cash readily available, a HELOC might also be the better choice. That’s only if you don’t mind a variable interest rate, however (unless the lender offers otherwise), and a fluctuating monthly payment.