HELOCHome equity line of credit
Tap your home's equity without giving up your mortgage rate
A home equity line of credit, or HELOC, is a second loan against the equity in your home. Your first mortgage stays exactly as it is, and you borrow what you need, when you need it, up to your approved limit.
- Licensed in Arizona
- NMLS #2786915
- Se habla español
Ways to use it
What homeowners use a HELOC for
Your equity is yours to use. Here's how homeowners put it to work most often.
Renovations and repairs
Update a kitchen, add a room, or take care of a roof or AC replacement.
Paying down other debt
Combine credit card or personal loan balances into one line secured by your home.
Education
Cover tuition and school costs as they come up instead of all at once.
A safety net
Keep an open line available for emergencies and only draw if you need it.
Big life expenses
Weddings, medical bills, or other large costs you'd rather not put on a card.
Your next property
Some investors use equity toward a down payment on a rental. Lender rules apply.
The process
How getting a HELOC works
Check your equity
Lenders look at your home's value, what you owe, your credit, and your income to set your credit limit.
Get approved for your line
Some lenders offer largely online applications and faster closings than a traditional refinance.
Draw as you need it
Use the line during the draw period, then repay what you borrowed during the repayment period.
Keep-your-rate check
HELOC or cash-out refinance? Compare your overall rate
A HELOC leaves your current mortgage rate alone. A cash-out refinance replaces it. Enter your numbers to compare the blended rate on everything you'd owe.
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- Total you'd owe
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Compares interest rates only. Closing costs, loan terms, and whether a HELOC rate can change also affect your total cost.
Compare
HELOC vs. cash-out refinance
| This programHELOC | Cash-out refinance | |
|---|---|---|
| Your first mortgage | Stays the same | Replaced with a new, larger loan |
| How you get the money | Draw over time, up to your limit | One lump sum at closing |
| Rate | Often variable; some fixed options | Fixed or adjustable on the whole balance |
| Upfront costs | Often lower | Similar to a refinance |
| Usually best when | Your current mortgage rate is low | Today's rates are close to or below your current rate |
Program availability and guidelines vary by lender and are subject to change. This is not a commitment to lend.
How it works
What to know before you borrow
A HELOC is flexible, but it's still a loan secured by your home. Here's what matters most.
Variable or fixed
Many HELOCs have a variable rate that can change over time. Some lenders offer the option to lock a fixed rate on the amount you draw.
Upfront costs
Closing costs are often lower than a full refinance, though fees vary by lender. Some HELOCs charge a fee if you close the line early.
Draw and repayment periods
HELOCs have a draw period for borrowing and a repayment period for paying the balance back. Your payment can rise when the draw period ends.
Your home is the collateral
Like your first mortgage, a HELOC is secured by your home. Borrow what you can comfortably repay.
Document checklist
What you'll need to apply
Check items off as you gather them. Your list is saved on this device.
Blue Reserve Mortgage · Document checklist · Home equity lines of credit
Income
Your home
Identity
Questions
Common questions
How much can I borrow with a HELOC?
Your limit depends on your home's value, what you owe on your mortgage, your credit, and your income. Lenders cap how much of your home's value can be borrowed against across all loans combined.
Will a HELOC change my current mortgage?
No. A HELOC is a separate second loan. Your first mortgage rate, balance, and payment stay the same.
How fast can I get a HELOC?
It depends on the lender. Some offer largely online applications and can close faster than a traditional refinance. We'll tell you what to expect before you apply.
Can I get a HELOC on a rental property?
Some lenders offer HELOCs on second homes or investment properties, but options are more limited than for a primary residence.
Talk to a loan officer
See how much equity you can tap
Share a few details and a loan officer will compare HELOC and cash-out refinance options for you.
- We compare multiple wholesale lenders for you
- English or Spanish, from application to closing
- No cost to ask questions
Prefer to talk? Call
928-750-6064Or choose a loan officer