Refinance & equity
HELOC
A home equity line of credit lets you borrow against your equity as needed, while keeping your current first mortgage in place.
Typical down payment
No down payment (equity-based)
Typical credit guidance
680+ (typical)
Ideal for
Homeowners with a low first-mortgage rate who want flexible access to cash for renovations, tuition or debt consolidation.
Key benefits
Keep your existing first mortgage and its rate
Draw only what you need, when you need it
Interest is charged only on the amount you use
Useful for projects with costs spread over time
Requirements
Lenders typically want you to keep some equity after the line, often 15–20%
Credit and income review similar to other home loans
Most HELOCs have a variable rate
A draw period followed by a repayment period
Guidelines shown are typical examples and vary by lender, program and borrower. They are not a commitment to lend.
Frequently asked questions
Is a HELOC better than a cash-out refinance?
It depends on your current rate and how you plan to use the money. If your first mortgage rate is low, a HELOC can let you keep it. We can compare both.
Can the rate on a HELOC change?
Yes. Most HELOCs have a variable rate tied to an index, so your payment can rise or fall over time.
Talk it through with a loan officer
We’ll compare this program with your other options and show the numbers side by side.
Guidelines shown are typical examples for illustration. Requirements vary by lender, program and borrower. Not a commitment to lend.
What borrowers say
The HELOC let us keep our low first-mortgage rate and fund the kitchen remodel in stages. Simple process start to finish.
Linda P.
HELOC
Sample review