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.

But which will be better to open in the new month, a HELOC or a home equity loan? The answer to this question may be less clear than prospective borrowers would like. Below, we'll detail when either would be preferable. Start by seeing how much home equity you could potentially borrow here.

Home equity rates did the slightest of dips in the most recent week. The $30,000 home equity line of credit (HELOC) fell one basis point to 8.28 percent, trading near its lowest level in more than a year and a half,