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Home Equity

Line of Credit

Are you looking for a way to access your home’s equity without losing your current mortgage’s great rate? Home Equity Lines of Credit or HELOCs allow homeowners like you to access cash from your biggest investment without flexibility and ease.

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What is a HELOC?

A Home Equity Line of Credit (HELOC) is a loan you take out on the equity of your home. A HELOC works similarly to a credit card with a revolving credit line and a “credit limit” determined by your loan amount. But unlike traditional credit card financing, a HELOC offers borrowers much lower rates. HELOCs begin to accrue interest only when you borrow against your loan. They tend to offer more flexibility than other second mortgage or cash out refinance options, because you don’t have to take out your equity all at once and you can keep your current mortgage rate intact.

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Our team of dedicated Senior Loan Advisors are here to help you find the right mortgage solution for your situation.

What are Common Reasons to Use a HELOC?

Many borrowers use HELOC’s to

    • Tackle Home Renovation Projects 

    • Pay College Tuitions

    • Get Rid of High Interest Debts, such as Credit Cards or Personal Loans

Keeps Reserves for Other Large Expenses like Weddings, Retirement, and Other Big Life Events


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Access Your Equity On Your Own Time

With inflation on the rise, it’s a stressful time for many homeowners who need access to cash. The good news is that you have options! The value of your home could be at an all-time high; using the equity in your home is a great way to float your family through finance life events. 

  • Access Your Home’s Equity in Cash

  • Flexibility of a Line of Credit

  • Lower Interest Rates Than Other Options Like Credit Cards

Frequently Asked Questions

How Does a HELOC Work?

A HELOC is a mortgage that allows you to take the equity out of your home and use that equity as a line of credit. HELOC’s work similarly to credit cards because they have a set ‘available balance’—the balance being based on the equity of your home—that you can access when you need to. The biggest perk of a HELOC over other cash out or second mortgage options, is that you’re only required to pay the principal and interest back on what you use. This means that if your available equity balance is $200,000, but you only need to use $100,000, you’ll only pay the principal and interest on that $100,000. With second mortgage or cash out options, you’re required to pay the interest and principal on your entire balance.

What are Newfi's HELOC Requirements?

  • Up to 85% Max CLTV
  • Borrow Up to $350,000
  • On Primary and Second Home Only
  • 30 Year Loan Term with 10 Interest Only Draw Period

What are the Benefits of a HELOC?

  • Access Your Equity While Keeping Your Current Rate
    • A HELOC allows you to open a separate loan on your home. This means that your current mortgage will stay in place and you do not have to refinance your home to take out your equity. Taking out a HELOC is a great option for borrowers who were able to take advantage of historically low rates in 2020 and 2021.
  • Borrow As Little or As Much as You Need
    • With a HELOC, you can borrow what you need, when you need it! Unlike Second Mortgages and Cash Out Refi that are paid out in one lump-sum payment, HELOC’s allow you to pull from your equity when it makes sense for you.

When Do I Get Access to My Equity?

At closing you will be able to pull out an initial cash amount. We recommend pulling out as much as you need for at least the next two months. There is a 60 day period of time after you close the loan in which you will not be able to take more money out. This is because the loan must go through post-closing review. Talk to your loan advisor for more advice on your situation.

What is a Second Position HELOC?

Second Position HELOC’s are the more common use of a HELOC. Second Position HELOC’s are a second mortgage—with its own interest rate and loan terms separate from your first mortgage—that you take out on the equity of your home. With a Second Position HELOC, there will be a second lien put on your property that is entirely independent of your first lien and mortgage.

Unlike a Second Mortgage, where you receive one lump-sum payment that you immediately start paying the total balance of, Second Position HELOC’s offer you the benefits of a revolving credit line you pay as you use, while allowing you to keep your great rate on your current mortgage!

What’s the Difference Between a HELOC and a Home Equity Loan?

A HELOC (Home Equity Line of Credit) is a mortgage you take out on your home and use as a line of credit. It works like a credit card, with the ability to borrow money at different points in time and only pay interest on what you use. HELOC’s offer borrowers revolving credit, pulled from the equity of their home, that they can use when needed.

Home Equity Loans are different from HELOC’s because, instead of pulling a certain amount from your equity, you receive a lump-sum all at once. This means, if you were to take $150,000 out of the equity of your home, you would receive one payment of $150,000 and begin to pay interest on the full amount immediately.

Both HELOC’s and Home Equity Loan offer borrowers competitive interest rates that are considerably lower than those for credit cards. That’s why many people opt to use these mortgages to consolidate their debt or make big purchases with lower interest rates!

What is the First Step in Getting a Home Equity Line Of Credit?

Because everyone has their own unique situation, we recommend speaking to a loan advisor about your options as your first step. Go to for a free consultation with one of our licensed loan advisors to learn about what documentation and qualifications you may need!

What are Current Rates for a Home Equity Line of Credit?

Your exact HELOC rates depend on the interest rate you qualify for and the term you select. Contact us to review your options and calculate your payment.