Loan programs
Home equity lines of credit (HELOC)
A HELOC lets you borrow against your home’s equity as you need it, while keeping your first mortgage exactly as it is. It’s a flexible way to fund a remodel, an addition, tuition or a down payment on your next property — and we compare HELOC options across multiple lenders instead of one bank’s product.
Reviewed by Clint Aguon, CEO & Loan Officer · NMLS #1893008 · Updated September 2026
How a HELOC works
- A credit line, not a lump sum. You’re approved for a maximum amount and borrow only what you need, when you need it.
- Draw period, then repayment. During the draw period you can borrow, repay and borrow again. After it ends, you repay the balance over the repayment period.
- A variable rate. Most HELOC rates are tied to an index and can go up or down over time, so your payment can change.
- Your first mortgage stays put. The HELOC sits behind your existing loan, so a low first-mortgage rate isn’t disturbed.
Common reasons to use one
- Remodels, additions and accessory dwelling units (ADUs)
- A down payment on a second home or investment property
- Paying off higher-interest debt
- Education costs or a financial cushion you may or may not use
What lenders look at
Lenders consider how much equity you have (your combined loan balances compared with your home’s value), your credit, and your income and debts. Guidelines vary from lender to lender — one reason it pays to compare through a broker.
Before you borrow. A HELOC is secured by your home. If you can’t repay it, you could lose your home. Rates on most HELOCs can change, and some lenders charge fees to open, maintain or close a line. We’ll walk you through every cost and term before you decide.
HELOC FAQs
Is a HELOC better than a cash-out refinance?
It depends on your current loan. If you have a first mortgage you want to keep, a HELOC lets you borrow against your equity without replacing it. If your current rate is higher than today’s options, or you want one fixed payment, a cash-out refinance may fit better. We price both so you can compare.
Can I get a HELOC on a rental or second home?
Some lenders offer HELOCs on second homes and investment properties, with stricter guidelines than for a primary residence. Ask us what is available for your property.
Does a HELOC affect my first mortgage?
No. Your first mortgage stays in place with the same rate and terms. The HELOC is a separate line of credit recorded behind it.