HELOCs
Refinance & Equity
HELOCs
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home's equity — giving you flexible access to funds as you need them.
Who May Benefit
- Homeowners who want flexible access to equity over time
- Those planning ongoing home improvement projects
- Borrowers who want to keep their existing first mortgage in place
- Those who need access to funds but may not use the full amount at once
- Homeowners with significant equity and strong credit
How It Generally Works
A HELOC has two phases: a draw period during which you can borrow up to your credit limit, and a repayment period during which you repay what you've borrowed. During the draw period, you typically pay interest only on the amount drawn.
Most HELOCs have variable interest rates, which means your payment can change over time. Eligibility, credit limits, and state restrictions vary. A HELOC keeps your existing first mortgage in place — it is a second lien, not a replacement of your current loan.
Key Considerations
Variable Interest Rate
Most HELOCs have variable interest rates tied to an index. Your rate and payment can change over time, which affects your monthly housing cost.
Draw and Repayment Periods
During the draw period (typically 5–10 years), you can borrow up to your limit and often pay interest only. During the repayment period, you repay principal and interest, which can significantly increase your payment.
Second Lien Position
A HELOC is a second lien on your property. It does not replace your first mortgage. If you sell or refinance, the HELOC must be paid off or subordinated.
State Restrictions
HELOC availability and terms vary by state. Some states have specific rules about home equity lending. Eligibility and program details vary by lender.
HELOC rates are typically variable and subject to change. Eligibility and state restrictions vary. A HELOC is a second lien on your property. All loans subject to credit approval.
Frequently Asked Questions
Interested in a HELOC?
Let's talk through your equity, goals, and how a HELOC compares to other options.
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