Home Equity Line of Credit (HELOC): Unlock Your Equity Without Losing Your Rate
In this guide, we’ll explain what a HELOC is, how it compares to other home equity solutions, who it’s best for, and how to apply if you're ready to access your home's value without selling or refinancing.
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What is a HELOC?
- Flexible access to your home equity, up to 95% of your home's value
- Interest-only payments during the draw period
- A revolving line of credit that can be reused without reapplying
- Funds you can use for renovations, debt consolidation, emergencies, or investments
Quick Answer
A HELOC is a smart and flexible way to borrow against your home equity without refinancing your current mortgage. It’s ideal for homeowners who want to use their home’s value to fund major expenses or gain financial breathing room. Think of it as a credit card secured by your home.
Why Consider a HELOC
Here's why many homeowners choose a Home Equity Line of Credit
Keep Your Low Mortgage Rate
Unlike a cash-out refinance, a HELOC doesn’t touch your first mortgage, so you can keep that great rate you locked in.
Only Pay for What You Use
You only pay interest on the amount you draw, not the full approved credit amount. This makes it a more flexible and affordable option than a cash-out refinance or personal loan.
Access Funds When You Need Them
Borrow money for home projects, unexpected expenses, or large purchases, then reuse the credit line as you repay it.
May Offer Tax Advantages
When used for qualified home improvements, the interest you pay may be tax-deductible (talk to your CPA to confirm).
Pro Tip
HELOCs often come with a 10-year draw period and a 20-year repayment period, making them great for long-term financial flexibility.
Who Qualifies for a HELOC in 2025?
Home Equity
Minimum 15-20% equity in your home
Credit Score
640 FICO (680+ for the best rates)
Debt-to-Income
Varies by lender, but typically 43% or less
Property Types Allowed
Primary home (some allow second homes)
Loan Amounts
$20,000 to $400,000 (based on equity and credit score)
Compare HELOC vs. Cash-Out Refinances and Personal Loans
HELOC
Cash-Out Refi
Personal Loan
How to Apply for a HELOC
Pre-Qualification
Tell us about your current mortgage, equity, and how you plan to use the funds.
Get Personalized Options
We’ll review your credit, home equity, and income to present available credit line amounts and rate options.
Submit Required Docs
We’ll help you upload any necessary documentation, including mortgage statements, proof of income, and a property valuation.
Close & Access Funds
Once your HELOC is approved and closed, you’ll have access to your credit line, ready to use as needed.
Frequently Asked Questions about HELOCs
Answers to the most common questions we hear about getting a home equity line of credit.
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