How to choose a home loan option

Let’s say you need some extra money for a home renovation. There are a few options you can choose from: a home equity loan, a home equity line of credit (HELOC), a PACE (energy) loan, and a cash-out refinance. How to choose? To answer this question of how to choose a home loan option, we’ve made this flowchart that shows you a process you can use to figure out your best option.

Home loan options

Also, there are so many lenders offering personal loans these days, like Marcus by Goldman Sachs. These personal loans are offered as an alternative to traditional home equity loans and home equity lines of credit. To learn about the details and compare the pros and cons of a personal loan versus a loan secured against your home, read this analysis.