Borrow against what you've built

HELOC & Home Equity

A HELOC (home equity line of credit) is a revolving credit line secured by your home's equity. A home equity loan gives you the same equity as a fixed lump sum. Both let you tap value without refinancing your first mortgage.

Best for: Homeowners with equity who want flexible access to cash for renovations, debt consolidation, or major expenses.

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Key features

Borrow as needed during the draw period (HELOC)
Fixed lump sum and fixed rate (home equity loan)
Keep your existing low first-mortgage rate
Interest may be tax-deductible for home improvements (consult a tax pro)

Typical requirements

Sufficient equity — lenders often cap total borrowing at 80–90% of value
Acceptable credit and income
Your home secures the loan, so missed payments put it at risk
Variable rates are common on HELOCs

HELOC & Home Equity FAQ

HELOC or home equity loan — what's the difference?

A HELOC is a revolving line you draw from as needed, usually at a variable rate. A home equity loan is a one-time lump sum at a fixed rate. Choose based on whether your need is ongoing or one-time.

How much can I borrow?

Typically up to 80–90% of your home's value minus what you still owe, depending on the lender and your credit.

Is my home at risk?

Yes — both options use your home as collateral, so it's important to borrow within a comfortable budget.

See any unfamiliar terms? Check the mortgage glossary.