A home equity loan uses the equity you have built up in your home to consolidate credit cards, hospital bills or pay for home improvements. A HELOC loan (home euqity loan line of credit) is a popular form of home equity loan where you can pull money out, pay it back and then pull more money out for other projects. This is a great option for people looking to complete some home improvement projects over a period of time and don’t need all the money up front. You only pay interest on the money that you pull out of the account. This form of home equity loan is always variable – but think of it as a “safe” credit card – your interest may even be tax deductible!