Tap Your Home Equity Without Giving Up Your First Mortgage
A HELOC is a line of credit secured by your home's equity. You borrow what you need, when you need it, and your current first mortgage stays exactly as it is.
Traditional HELOCs for your primary residence or second home. DSCR HELOCs for rental properties, qualified on the rent. Tell us the property, roughly what it's worth, and what you owe, and a licensed loan expert will show you what's available.
No obligation · Your home is the collateral for a HELOC*
Why a HELOC is getting a second look this fall
Mortgage rates climbed back above 7% in late September for the first time since early 2025. For homeowners sitting on a lower-rate first mortgage, a cash-out refinance would mean giving that rate up on the entire balance. A HELOC lets you borrow against equity on top of it instead.
Your first mortgage rate is worth protecting
If you locked a lower rate in past years, a HELOC adds a second lien for just the amount you need rather than refinancing everything at today's rates.
Most HELOCs move with prime
HELOC rates are typically variable and tied to the prime rate. The Fed's latest minutes left another increase on the table before year-end, so plan for a payment that can change.
Only borrow what the plan needs
Because you pay interest on what you draw, a HELOC suits staged costs like a remodel, a reserve, or a down payment on the next property, better than a lump sum you'd sit on.
Market data as of Oct 19, 2026. Sources: Federal Reserve (H.15, FOMC statement and minutes); Freddie Mac Primary Mortgage Market Survey. General market information only; not a rate quote or an offer of credit. The prime rate is shown for reference and is not American Prime Rate's HELOC rate.
How much equity could you access?
HELOCs are sized on combined loan-to-value (CLTV): your first mortgage plus the new line, divided by the home's value. Enter rough numbers to see where you stand.
Illustration only. Actual CLTV limits depend on the program, property type, occupancy, and credit. Final value is set by appraisal or valuation.
Traditional HELOC or DSCR HELOC
Traditional HELOC
Secured by your primary residence or second home. Qualification looks at your credit, income, and combined loan-to-value.
- Home improvements and remodels
- A reserve for emergencies or big expenses
- Education or other planned costs
- Keep your existing first mortgage in place
DSCR HELOC
Secured by a rental or investment property. Qualification centers on the property's rental cash flow, not your personal income.
- Down payment or reserves for your next purchase
- Repairs, upgrades, and turnover costs
- A standing line for portfolio growth
- No tax returns or W-2s for qualifying income
Prefer a 30-year fixed loan on the rental instead? See DSCR loans.
HELOC terms at a glance
Final terms depend on property, occupancy, credit, and CLTV. Tell us your situation and we'll lay out the options.
| Traditional HELOC | DSCR HELOC | |
|---|---|---|
| Property | Primary residence or second home | Non-owner-occupied rental / investment |
| Qualifies on | Credit, income, CLTV | Rental cash flow, credit, CLTV |
| Max CLTV | [XX%] | [XX%] |
| Line amount | [$XX,000 – $X,XXX,000] | [$XX,000 – $X,XXX,000] |
| Draw period | [X years] | [X years] |
| Repayment period | [XX years] | [XX years] |
| Lien position | [1st or 2nd] | [1st or 2nd] |
| Minimum credit score | [XXX] | [XXX] |
All lines subject to credit approval, appraisal or valuation, and program guidelines. Not a commitment to lend.
HELOC vs. cash-out refinance
Both turn equity into cash. Which one makes sense depends mostly on your current first-mortgage rate and how you'll use the money.
| HELOC | Cash-out refinance | |
|---|---|---|
| Your first mortgage | Stays in place, same rate and payment | Replaced by a new, larger loan |
| How you get the money | A line you draw from as needed | One lump sum at closing |
| Rate type | Usually variable, tied to prime | Fixed or adjustable |
| Interest charged on | Only what you've drawn | The full new loan balance |
| Often fits when | Your first-mortgage rate is lower than today's, or costs come in stages | Your current rate is near or above today's, or you need one large amount |
Comparing a full refinance? See refinance options.
What to plan for with a HELOC
Things to understand up front
- Your home or property secures the line. Missed payments put it at risk.
- A variable rate means your payment can rise when prime rises.
- When the draw period ends, the payment typically increases because principal repayment begins.
- Ask about closing costs, annual fees, and any minimum draw before you sign.
What you'll typically provide
- Current mortgage statement and homeowners insurance
- Property details for the home or rental
- Traditional HELOC: income documentation
- DSCR HELOC: lease or rent schedule; bank statements for reserves
- Entity documents, if the rental is held in an LLC
From first call to an open line
- Share the basicsProperty type, rough value, what you owe, and what you'll use the funds for.
- Review your optionsWe compare a HELOC against a cash-out refinance and other options so you see the trade-offs.
- Valuation and approvalWe confirm value and complete underwriting for the program that fits.
- Close and drawAfter closing, draw on the line as you need it during the draw period.*
Every loan we do is built on customer service.
- You'll know who's working on your loan, and you can reach them.
- Straight answers in plain English, including when a HELOC isn't the right fit.
- One team from first call to closing, keeping you updated along the way.
HELOC, or a different loan?
A HELOC fits if…
You have meaningful equity, want to keep your current first mortgage, and expect to borrow in stages or keep a line available.
Need one large lump sum?
If your current rate is close to today's, a cash-out refinance may cost less overall and gives you a fixed-rate option.
Age 62 or older?
A reverse mortgage can turn equity into funds without a required monthly mortgage payment, as long as you meet the loan's obligations.
HELOC questions
What is a HELOC?
A home equity line of credit is a revolving line secured by the equity in a property. During the draw period you can borrow, repay, and borrow again up to your limit. After that, the line enters a repayment period.
Will a HELOC change my current mortgage?
No. A HELOC is usually a separate second lien, so your existing first mortgage keeps its rate, balance, and payment.
How are HELOC rates set right now?
Most HELOCs carry a variable rate based on the prime rate plus a margin. Prime has been 7.00% since September 18, 2026. If the Fed raises rates again, prime and HELOC rates typically follow.
HELOC or cash-out refinance: which is better in today's market?
If your current first-mortgage rate is well below today's rates, a HELOC usually lets you keep it and borrow only what you need. If your rate is close to today's, or you need one large amount, a cash-out refinance can make more sense. We'll compare both with your numbers.
How much can I borrow?
It depends on your home's value, what you owe, and the program's combined loan-to-value limit. The equity check above gives a rough estimate, and an appraisal or valuation sets the final number.
Can I get a HELOC on a rental property?
Yes. A DSCR HELOC is secured by an investment property and qualifies mainly on the property's rental income rather than your personal income.
What happens when the draw period ends?
You can no longer draw on the line, and payments typically switch to include principal, which usually increases the monthly payment. Plan for that change ahead of time.
Are there risks?
Yes. The line is secured by your property, so missed payments put it at risk, and a variable rate means payments can rise. Borrow for a clear purpose and make sure the payment still works if rates go up.
Curious what your equity could do?
Send us the property, a rough value, and what you owe. A licensed loan expert will show you what a HELOC looks like next to your other options, with no obligation.