HELOC & Home Equity Loans
Access your home's equity with a revolving line of credit or a fixed-rate lump sum, while keeping your existing first mortgage in place.
Two Ways to Tap Your Equity
HELOC
✓ Draw funds as needed
✓ Variable rate (typically prime + margin)
✓ 10-year draw period, 20-year repayment
✓ Interest-only payments during draw
✓ Reuse as you pay it down
HELOAN (Home Equity Loan)
✓ Fixed rate and fixed payment
✓ 10, 15, 20, or 30-year terms
✓ Predictable monthly payment
✓ Best for one-time large expenses
✓ No surprises — rate never changes
HELOC vs. HELOAN vs. Cash-Out Refi
The Home Equity Process
Estimate Your Equity
Current value minus your existing mortgage balance determines how much you can access.
Choose Your Structure
A HELOC for revolving access and flexibility, or a HELOAN for a fixed rate and a predictable payment.
Underwriting & Appraisal
Value is confirmed and the new lien is placed behind your existing first mortgage.
Draw or Receive Funds
HELOC: draw as needed over a 10-year period. HELOAN: the full amount is disbursed at closing.
When Home Equity Makes Sense
Protecting a Low First Mortgage
Tap equity without refinancing — your existing rate and term stay exactly as they are.
Home Improvements
A HELOC’s draw period fits phased renovation work where costs arrive over time.
Debt Consolidation
A HELOAN’s fixed rate and fixed payment give you a defined payoff date on consolidated balances.
Recurring or Uncertain Costs
Tuition, medical expenses, or business needs where you want access without borrowing it all at once.
Andrew Baker · NMLS 2688601 · (949) 665-9090
Common Questions
What is the difference between a HELOC and a home equity loan?
A HELOC is a revolving line you draw from as needed, usually at a variable rate, with a draw period followed by a repayment period. A home equity loan (HELOAN) is a lump sum at a fixed rate repaid on a set schedule. Both sit behind your existing first mortgage.
How much equity do I need for a HELOC?
Most programs want you to retain some equity after the line is in place, so the combined first mortgage and line together stay below a maximum percentage of the property's value. That maximum varies by lender, credit profile, occupancy, and whether the property is a primary residence, second home, or rental.
Does a HELOC require me to refinance my first mortgage?
No. A HELOC or HELOAN sits in second position behind your existing first mortgage, which stays exactly as it is. That is the main reason homeowners choose one — it accesses equity without disturbing the rate and term on a first mortgage they want to keep.
Ready to Get Started?
Fill out our quick form or apply directly through one of our lender portals.