Why Consider A HELOC?
Interest-only payment options
During your initial draw period, make interest-only payments while you put your equity to work for you. Your loan is then fully amortized in the repayment period afterwards.
Take advantage of favorable loan terms
You can utilize your growing equity without having to refinance your first mortgage loan — often up to 95% of your home's value.
Let JFQ Lending show you how
Our experienced mortgage professionals will review your complete financial profile, including your equity position, income, and credit to make it simple & easy.
A Home Equity Line of Credit, or HELOC, is a secondary loan (sometimes referred to as a subordinate lien) that follows behind your first mortgage. With a HELOC, you can borrow against the current value of your home without changing the terms of your first mortgage.
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.
While a Home Equity Line of Credit does not have the same specific income, asset, and credit qualifying criteria as a traditional mortgage, it does require that we take your entire financial picture into consideration.
Individual product availability and pricing can vary based on your credit scores and your combined loan-to-value (CLTV) ratio. As with other loan types, having a higher credit score and a lower loan-to-value typically offers the best pricing.
HELOC vs. Refinance
Completing a 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.
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.
Getting approved starts here.
Our mortgage professionals are ready to help.