HELOC (Home Equity Line of Credit)
Tap your equity without touching your low first-mortgage rate.
A revolving line of credit secured by your home's equity — draw what you need, when you need it, and pay interest only on what you've actually used.
Program Highlights
- Access up to roughly 80–90% of your home's value combined with your existing mortgage balance, depending on the lender and your credit profile
- Draw period (typically 10 years) where you can borrow, repay, and borrow again, followed by a repayment period
- Interest-only payment options available during the draw period
- Variable rates are standard, with some lenders offering a fixed-rate conversion option on all or part of the balance
- Keeps your existing first mortgage and its rate intact — no need to refinance it
- Closing costs are typically lower than a full cash-out refinance
Best For
- Homeowners with a low first-mortgage rate they don't want to lose
- Renovation and home-improvement projects
- Debt consolidation, tuition, or investors using equity to scale
What You'll Need to Qualify
- Sufficient equity (typically 15%+ remaining after the line)
- Typically 680+ credit
- Income and asset documentation
- Primary, second home, or investment (program-dependent)
Guidelines vary by lender and borrower profile. All loans subject to underwriting approval. Not a commitment to lend.
Good to Know
because a HELOC sits behind your first mortgage, approval and pricing depend heavily on your combined loan-to-value (CLTV) across both loans — the more equity you have, the more access and the better the terms.
Common Questions
How is this different from a cash-out refinance?
A HELOC is a separate line of credit behind your existing mortgage; a cash-out refinance replaces your whole mortgage with a new, larger one.
Do I have to use all the money at once?
No — you draw what you need, when you need it, up to your credit limit, and only pay interest on what's drawn.
Is the rate fixed?
Typically variable, though some lenders allow locking a fixed rate on part or all of the balance.