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Home Equity

Line of Credit

Access your home’s equity using a revolving credit line and keep your first mortgages current interest rate. 

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What is a HELOC?

A Home Equity Line of Credit (HELOC) is a second mortgage a borrower takes out on the equity of their home. HELOCs work similarly to credit cards without the high credit card interest rates. HELOCs offer revolving credit lines and a “credit limit”, which is determined by your loan amount. And because these mortgages only accrue interest when you borrow against your loan, you only pay on what you use. 

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What are Common Uses for a HELOC?

Borrowers often use a HELOC to:

    • Tackle Home Renovation Projects 
    • Pay College Tuitions
    • Get Rid of High Interest Debts, such as Credit Cards or Personal Loans

They may also keep reserves for other large expenses like Weddings, Retirement, and other big life events.


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What are HELOC Requirements?

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

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. HELOCs work similarly to credit cards because they have a set ‘available balance’—the balance being based on the equity of your home—that borrowers can access when they need to. 

Unlike a Cash Out Refinance or Second Mortgage, HELOCs only require borrowers 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. Second Mortgage and Cash Out options require borrowers to pay the interest and principal on the entire balance.

What is a Piggyback Mortgage and How Does it Work?

Piggybacks, or a Piggyback Mortgage, is a type of HELOC or Second Mortgage that borrowers take out alongside their first mortgage. With a Piggyback Mortgage, the first mortgage has the highest loan balance while the Piggyback Mortgage has a lower loan balance. These mortgages are often used to help borrowers fund part of their down payment and avoid having to pay for Private Mortgage Insurance.

Pro's and Con's of a Piggyback Mortgage


  • Down Payments Cost You Less Out-of-Pocket
  • Avoid Private Mortgage Insurance (PMI) Premiums
  • Monthly Mortgage Payments are Lower once Piggyback Mortgage is Paid Off


  • May be Difficult to Qualify for Two Mortgages at Once
  • Both the Primary and Piggyback Mortgage will Have Closing Costs
  • You’ll Likely Need to Pay Piggyback in full Before being able to Refinance

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 90 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 are second mortgages—a second lien on your home with its own interest rate and loan terms, separate from your first mortgage—that borrowers take out on the equity of their home. When a HELOC is in second position, they are entirely independent of your first mortgage, which means you never have to touch your first mortgages current interest rate.

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.

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