Learn · loan programs
HELOCs and home equity loans
Borrow against your home’s equity.
What it is
A home equity line of credit (HELOC) is a revolving line secured by your home: you can draw, repay and draw again up to a limit, usually at a variable rate. A home equity loan is a lump sum with fixed payments.
Who it fits
- Homeowners with equity who need funds for repairs, a special assessment or other goals
- Owners who want to keep their current first mortgage rate
How it works
- The lender looks at your equity (home value minus what you owe), credit, income and debts.
- Your home secures the line; if you can’t repay, the lender can foreclose.
Benefits
- Keeps your existing first mortgage in place
- Draw only what you need (HELOC)
Tradeoffs
- Variable rates can rise
- Your home is collateral
Typical documents
- Mortgage statement
- Income documents
- Homeowner’s insurance declarations
Your lender may ask for more or less. Full list: 1-page document checklist (PDF).
Common myth: “A HELOC is free money.” It’s a loan secured by your home, with interest and risk.
Compare all three side by side: rate-and-term, cash-out and HELOC.
Check how a new payment changes your ratios with the DTI calculator.
Last checked October 17, 2026. Sources: CFPB, What is a HELOC?
Availability depends on the lender and program funding; ask me which ones I can use for your loan.
Want to know what fits you?
Tell me a little about your situation and I’ll walk you through the options.