The answer to this question is not definitive, even for March 2025. For some homeowners, a HELOC could be most applicable to their situation, while, for others, a home equity loan could be the clear choice this month. Here's why each may be better for you:

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.

Both home equity lines of credit (HELOCs) and home equity loans are up in numbers, their originations rising in Q3 2024 by 6 and 8 percent, respectively. HELOC balances are bigger, too: They climbed in Q4 of last year, marking the 11th quarter in a row of growth.

HELOCs allow you to turn a portion of your equity, which is the difference between your mortgage balance and your home value, into a revolving line of credit you can draw from as necessary for up to 15 years,

Home equity sharing companies offer a way to tap into your home’s increased value without taking on extra debt payments. They can provide extra cash for homeowners who don’t qualify for or prefer not to take out a home equity loan or line of credit,

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,