Couples who got married in 2025 spent an average of $36,000 on their wedding, according to Zola, up from $33,000 in 2024 and $29,000 in 2023.
While many people save up for the big day, nearly a third (31%) charge their wedding expenses. With credit card interest rates sailing past 21%, the bride and groom (or their parents) might be tempted to find other ways to finance the big day.
Home equity loans and home equity lines of credit (HELOCs) have lower rates than cards and allow you to borrow a lot more money. You’ll also have a lot more time to pay off the debt.
But is it a smart move to tap your home equity for a wedding? We asked an expert.
What is home equity?
Home equity is the percentage of your home you own outright, versus your outstanding mortgage balance. If you pay for your home in cash, for example, you’ll start with 100% home equity. If you put 20% down, you’d have 20% home equity at closing.
Your home equity grows as you make mortgage payments, but it can also increase if you make home improvements or property values increase.
One of the benefits of home equity is being able to leverage it to take out a home equity loan or HELOC.
Because the debt is secured by your house, you can usually get a better rate and terms than other kinds of financing. But that also means your lender could foreclose if you fail to make on-time payments.
Should you use home equity to pay for a wedding?
Experts encourage homeowners to think twice before tying up their home equity to fund their big day.
“The most clear downside is that you’re putting your home at risk for this one-time event,” Jovan Johnson, founder of Atlanta’s Piece of Wealth Financial Planning, told CNBC Select. “It can be 20 years, or even more, before you pay off that debt.”
You’re also taking a substantial financial risk at the very start of your life together, Johnson added.
“Life happens. You have to plan for the worst-case scenarios,” he said. “If you have to relocate, or something happens and you have to sell your home, that’s equity you lose out on.”
Wedding loans vs. home equity financing
If you’re determined to borrow money to pay for your wedding, Johnson said, “I would always start by asking you to consider less risky options — preferably something without your house being collateral.”
More than one in ten couples use personal loans to finance their wedding, according to Zola. Because of their intended use, they’re often referred to as “wedding loans.”
Here’s how a wedding loan compares to home equity financing:
- Rates: Usually, interest rates on personal loans are slightly higher than home equity loans. If you have excellent credit (a FICO Score of 750), however, you may be able to get a better rate with a personal loan without putting your house on the line.
- Repayment terms: Personal loans typically have repayment terms of three to seven years. Home equity loans and HELOCs, however, have terms as long as 20 years, giving you smaller monthly payments and more time to repay.
- Loan size: Personal loans usually range from $2,000 to $100,000, while home equity loans and HELOCs usually have a minimum of $10,000 but can go up to $500,000 or higher. If you’re looking for a small loan to cover wedding expenses, a home equity product isn’t an option.
- Funding: Home equity loans and personal loans are both funded in one lump sum, but a HELOC has a set draw period during which you can tap a revolving line of credit. With wedding expenses hard to predict, a HELOC allows you to borrow only the amount you need, rather than estimate a loan amount and repay funds you didn’t use.
- Risk: Failure to make regular payments on any kind of financing will damage your credit score. If you fall behind on a wedding loan, your creditor can send your debt to collections or bring a lawsuit to collect the debt. But because they’re secured loans that use your property as collateral, defaulting on a HELOC or home equity loan could cost you your house.
| Wedding loan | HELOC | Home equity loan | |
|---|---|---|---|
| Terms | 3 to 7 years | Draw period: 10 years, repayment period: 20 years | 15 to 30 years |
| Loan size | $2,000 to $100,000 | $10,000 to $6 million | $10,000 to $500,000+ |
| Funding method | Lump sum | Revolving line of credit | Lump sum |
| Risk | Creditor can send your debt to collections or sue for payment | Defaulting can result in foreclosure | Defaulting can result in foreclosure |
LightStream Personal Loans
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Annual Percentage Rate (APR)
6.94% – 25.29%* APR with AutoPay
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Loan purpose
Debt consolidation, home improvement, auto financing, medical expenses, and others
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Loan amounts
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Terms
24 to 144 months* dependent on loan purpose
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Credit needed
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Origination fee
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Early payoff penalty
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Late fee
Terms apply. *AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Excellent credit required for lowest rate. Rates vary by loan purpose.
Upstart Personal Loans
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Annual Percentage Rate (APR)
-
Loan purpose
Debt consolidation, credit card refinancing, wedding, moving or medical
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Loan amounts
-
Terms
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Credit needed
300 (but will accept applicants with insufficient credit history)
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Origination fee
0% to 12% of the target amount
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Early payoff penalty
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Late fee
The greater of 5% of last amount due or $15, whichever is greater
Pros
- Open to borrowers with fair credit (minimum 300 score)
- Will accept applicants who have insufficient credit history and don’t have a credit score
- No early payoff fees
- 99% of personal loan funds are sent the next business day after completing required paperwork before 5 p.m. Monday through Friday
Cons
- High late fees
- Origination fee of 0% to 10% of the target amount (automatically withheld from the loan before it’s delivered to you)
- $10 fee to request paper copies of loan agreement (no fee for eSigned virtual copies)
- Must have a Social Security number
Home equity FAQs
Should you use home equity to pay for a wedding?
If you’re approved for a home equity loan or HELOC, you can use the funds for nearly any reason, including paying for a wedding. You’ll get a lower interest rate than with a personal loan or credit cards, and you’ll have a single debt rather than numerous credit card bills. But experts advise caution because it requires using your house as collateral and could risk foreclosure.
Is a home equity loan or HELOC better to fund a wedding?
If you’re determined to borrow from your home equity to pay for a wedding, a HELOC may make more sense. Interest rates can be lower and you can borrow exactly how much you need, rather than paying for financing you didn’t use.
How can I tell how much equity I have?
You can determine your home equity by subtracting your outstanding mortgage balance from your house’s current market value. If your property is worth $500,000 and you have $200,000 on your mortgage, you have 60% equity ($300,000). Reach out to a realtor or appraiser to understand your home’s market value.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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