HOME EQUITY LINE OF CREDIT AND SECOND MORTGAGES
Use your equity and keep your low rate.
If you have a low rate on your current mortgage, you may not want to refinance it. A home equity line of credit or a second mortgage lets you borrow against your home's equity while your first mortgage stays exactly as it is.
Two options
Home equity line of credit
A revolving line you can draw from as you need it, similar to a credit card secured by your home. You pay interest only on what you use. It works well for projects paid in stages, like a remodel.
Second mortgage (home equity loan)
One lump sum with a fixed payment. It works well when you know the exact amount you need, like paying off a set of debts.
Common ways homeowners use their equity
Remodels, additions and repairs
Paying off high-interest credit cards
A down payment on a second home or rental
Education or other large expenses
Common questions
How much can I borrow?
It depends on your home's value, what you owe now and your income. Most programs let you borrow up to a set share of your home's value across both loans combined. I'll calculate your number on our call.
Is a home equity line of credit or a cash-out refinance better?
If your current rate is lower than today's rates, a home equity line of credit or second mortgage usually lets you keep it. If your rate is high, a cash-out refinance may save more. I'll compare both.
Does a home equity line of credit have a variable rate?
Many do, though some offer fixed-rate options. We'll go over how your payment could change before you choose.