Accessing Your Home Equity: 
HELOC 101

The facts are in: US homeowners are sitting on more equity than ever in their homes. S&P Case Shiller Home Prices are up by double-digit percentages across the country and this may have you wondering how you can tap into this money.

What Is A Home Equity Line of Credit?

There are a few types of Home Equity Loans out there, but one of the most common is the Home Equity Line of Credit or HELOC. Getting a home equity line of credit involves creating a secondary loan (sometimes referred to as a subordinate lien) behind your current first mortgage. It does not involve changing the terms of your current mortgage and creates another separate monthly payment on its own terms.

HELOCs typically have a quick and streamlined review and approval process. With the ability to access up to 95% of your home's value, and the flexibility to use these funds at your own pace during the draw period, having an open line of credit can be an additional layer of financial security as well.

  • Consolidate Debt

    Save money monthly by consolidating your higher interest debts into one lower monthly payment using the equity you have built in your home. Right now, a Home Equity Line of Credit can offer you low, interest-only payments during the draw period (and up to 20 years to pay it back in full afterwards).

  • Keep Your First Mortgage

    If you have a great rate on your home mortgage right now or if you don't want to start over with a cash-out refinance, then a Home Equity Loan is your go-to option for tapping into the cash in your home.

  • Fund What Matters Most To You

    Whether it's upcoming college tuition, your down payment on a vacation home, or start-up capital for a new business, you can use your home's equity to pay for these important expenses.

     
What Is the Difference Between a Home Equity Loan and a Cash-Out Refinance?

Completing your cash-out refinance involves paying off your current mortgage and replacing it with a new, higher loan amount. The entire loan amount is under the same interest rate and loan term going forward, and you have one new monthly payment.

Opening a home equity line of credit is a direct access point for your home's equity, without making any changes to your first mortgage. Since this is considered a secondary loan, the qualifying criteria, loan terms, and interest rates are going to differ from a cash-out refinance loan in a few ways. Be sure to weigh all of your options and let one of our home loan professionals fill you in on the details today!

Getting approved starts here.

Our experts are ready to help. Getting a Home Equity Loan is easier than you think.

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