HELOC
Home Equity Line of Credit
Flexible access to your home’s value — borrow what you need, when you need it, and pay interest only on what you use.
What is a HELOC?
A Home Equity Line of Credit works like a credit card secured by your home. You’re approved for a limit and can draw from it during a draw period of 5–10 years, then repay over a repayment period of 10–20 years. It’s a good fit when you want flexible, ongoing access rather than a single lump sum.
Key Features
How a HELOC works
Revolving credit line
Borrow, repay, and borrow again up to your limit — much like a credit card secured by your home.
Draw when you need it
A draw period of 5–10 years lets you access funds as needed, followed by a repayment period of 10–20 years.
Interest only on what you use
During the draw period you pay interest only on the amount you’ve actually borrowed, not your full limit.
Variable rates
HELOC rates typically move with the market, so payments can change over the life of the line.
HELOC vs. HEI vs. Cash-Out Refinance
Three ways to tap your home’s value — each suited to different needs.
| Feature | HEI | HELOC | Cash-Out Refi |
|---|---|---|---|
| Monthly payments | None | Yes | Yes |
| Interest | None | Variable | Fixed |
| Income requirements | No | Yes | Yes |
| Typical credit score | 500+ | 680+ | 620+ |
| How much you can access | Up to $600K | Up to 85% CLTV | Up to 80% LTV |
| Repayment | When you sell, refinance, or buy back | Draw period, then repayment period | New mortgage term |
Which is right for you?
A quick guide
Choose a HELOC if…
You want flexible, ongoing access to funds over several years and are comfortable making monthly payments.
Choose an HEI if…
You prefer a lump sum with no monthly payments or interest, and don’t want income to be a qualification barrier.
Choose a Cash-Out Refi if…
Rates have dropped and you want to replace your mortgage while taking cash out at a potentially lower rate.
Ready to access your equity?
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