Tap your equity, keep your rate.
A HELOC is a revolving line of credit secured by your home, sitting behind your first mortgage — draw only what you need, pay interest only on what you draw. Its best trick: it lets you reach the equity you've built for a renovation, debt payoff, or your next move without refinancing the low first-mortgage rate you already have.
A credit line, secured by your home.
A HELOC — home equity line of credit — is a revolving line secured by your house, sitting behind your first mortgage. Think of it like a credit card backed by your equity: you're approved for a limit, you draw only what you need, and you pay interest only on what you've drawn. During the draw period you can borrow, repay, and borrow again; after it, the balance amortizes over the repayment period. It's the flexible way to reach the equity you've built without disturbing the loan you already have.
HELOC vs. cash-out refinance — the one that matters.
This is the decision people get wrong. A cash-out refinance replaces your entire first mortgage with a new, bigger one — which is painful if you're sitting on a low rate you'd hate to give up. A HELOC leaves that first mortgage completely untouched and adds a second, separate line on top. If your first mortgage is in the 3s and you just need $60k for a remodel, refinancing the whole thing to a today's rate makes no sense — a HELOC lets you keep the good rate and borrow only against the equity. Different tools; the rate on your existing loan usually decides which one wins.
What people actually use it for.
The three big ones: renovations (often the highest-return use — you're reinvesting in the asset), consolidating higher-interest debt into one lower secured payment, and bridging — covering the down payment on your next home before the current one sells. Because you draw only what you need when you need it, a HELOC fits lumpy or staged expenses far better than a lump-sum loan. The flip side: it's your home on the line, so it's a tool for planned moves, not impulse spending.
Rates float — so the terms are the shopping.
Most HELOCs carry a variable rate tied to an index, so the number can move over time — which means the fine print matters as much as the headline rate: the draw and repayment periods, any minimum draw, annual fees, and how the margin is set. Lenders structure these very differently, and that structure is exactly what a broker shops. Tell me what you're borrowing for and how fast you'll pay it back, and I'll match you to the line whose terms fit — not just the lowest teaser.
Straight answers.
Straight answers — the same way you'd get them on the phone.
What's the difference between a HELOC and a cash-out refinance?+
A cash-out refinance replaces your whole first mortgage with a bigger new one; a HELOC leaves your first mortgage untouched and adds a separate revolving line behind it. If you have a low first-mortgage rate you don't want to lose, a HELOC is usually the better tool. Compare the numbers on our cash-out calculator.
How much can I borrow with a HELOC?+
It depends on your home's value, your remaining first-mortgage balance, and the lender's combined loan-to-value limit. Send us your estimated value and current balance and we'll ballpark your available line.
Is a HELOC rate fixed or variable?+
Most HELOCs are variable, tied to an index, so the rate can change over the life of the line. Some lenders offer fixed-rate draw options. Because the structure varies so much, the terms — not just the headline rate — are what we shop.
Can I get a HELOC if I'm self-employed?+
Often yes — the same alt-doc thinking that powers our bank statement and P&L programs applies to home-equity lending too. Tell us how your income is documented and we'll find the fit.
What can I use a HELOC for?+
Anything, but the smart uses are renovations, consolidating higher-interest debt, or bridging the down payment on your next home before the current one sells. Since it's secured by your house, it's a tool for planned moves — we'll talk through whether it's the right one.
HELOC availability, limits, rates, and terms vary by lender and are subject to your equity, credit, and combined loan-to-value. A HELOC is secured by your home. Figures and features shown are general information, not a loan commitment or offer to lend.
Not sure — HELOC or cash-out?
Send your home value, current balance, and what you're borrowing for. I'll show you both paths side by side and shop whichever fits.