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As you research home equity lending options, such as a home equity line of credit (HELOC), make sure you consider the pros and cons of each product before making a decision. Those factors will vary based on your plans for the money and the prospective lender.

A home equity line of credit (HELOC) may be a good option if you’ve built sufficient equity in your home, and you want to pay off your mortgage right away. When approved for a HELOC, homeowners can expect lower interest rates than what they pay on a mortgage loan. Lower interest means more savings and possibly paying off the loan sooner.

If you own investment property, you may be able to leverage your investment through a home equity line of credit, also known as a HELOC. A HELOC is a revolving line of credit tied to the equity you’ve built in your property. Since a HELOC taps into the property’s equity, you must owe less than the current appraised value of your property to qualify. Depending on your lender, you also may need to meet credit score requirements, prove a certain debt-to-income ratio and have a certain percentage of your property paid off.

If you’re a homeowner and need access to cash, borrowing against the equity in your property presents plenty of loan options. But deciding on the right type of home equity loan or home equity line of credit depends on your circumstances. You may also want to consider leveraging your home equity with a cash-out refinance instead of adding a second monthly payment tied to your property.

The first step toward determining whether you need to establish a new line of credit is by understanding the basics. To start off, that means asking yourself, what is a line of credit? In short, a line of credit provides access to a limited amount of funds, allowing you to borrow as little or as much of that amount as you need. Once approved for a line of credit loan, borrowers can think of themselves as their own bank, as they gain full access to those funds whenever they need it.