A Home Equity Line of Credit lets you borrow against your home's equity on a revolving basis — like a credit card secured by your home. Keep your existing mortgage and rate. Only pay interest on what you draw.
A HELOC is a second lien on your property — completely separate from your existing mortgage. You keep your current rate and payment exactly as-is, and gain access to a new line of credit based on your home's equity.
Unlike a cash-out refinance, you're not replacing your mortgage. You draw only what you need, when you need it, and only pay interest on what you've borrowed.
Competitive terms from 100+ wholesale lenders.
Your equity, your choice. No restrictions on how you use the funds.
Kitchen remodels, ADU additions, solar panels, landscaping — increase your home's value while you improve it.
Replace high-interest credit card debt with a much lower HELOC rate. Save hundreds per month on interest.
Use your equity as a down payment on an investment property or to fund a fix-and-flip project.
Fund tuition and education expenses at a fraction of the interest rate of student loans.
Launch or grow your business with low-cost capital secured by your home's equity.
Keep an open line you don't draw from unless needed. There's no cost to have the line available.
Both access your equity — but they work very differently.
| Feature | HELOC | Cash-Out Refinance |
|---|---|---|
| Affects existing mortgage? | No — second lien only | Yes — replaces it |
| Best when current rate is | Low (keep it) | High (replace it) |
| Access style | Revolving credit line | Lump sum |
| Interest-only option | Yes (draw period) | No |
| Closing costs | Lower | Higher |
| Rate type | Variable | Fixed available |
No. A HELOC is a completely separate second lien. Your existing mortgage remains exactly as-is — same rate, same payment, same lender. You're simply adding a new revolving credit line on top.
Most HELOCs have a variable rate tied to the Prime Rate plus a margin. When Prime goes up or down, your HELOC rate adjusts accordingly. Some lenders offer fixed-rate HELOC options or allow you to lock a portion at a fixed rate.
No — that's one of the biggest advantages of a HELOC. Your line is available whenever you need it. You only pay interest on what you actually draw. Many homeowners keep an open HELOC as an emergency fund.
Most lenders allow up to 85–90% combined loan-to-value (CLTV). So if your home is worth $700K and you owe $400K, you may be able to access up to $230K ($700K × 90% - $400K = $230K).
HELOCs on investment properties are harder to find but we do have lender relationships that offer them. Typically the max CLTV is lower (70–75%) and rates are higher than primary residence HELOCs. Contact us to discuss your specific situation.
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