Home Equity Line of Credit (HELOC)
A flexible credit line secured by your home’s equity.
Overview
A Home Equity Line of Credit lets you unlock the equity you've built in your home without refinancing your existing mortgage. Rather than a lump sum, a HELOC works as a revolving credit line — draw what you need, when you need it, and pay interest only on the balance you've actually used. We'll work with you to determine an appropriate line amount based on your equity and your goals.
Who It’s For & What You’ll Need
- Sufficient equity in your home after accounting for your existing mortgage balance
- A qualifying credit score and verified income
- A combined loan-to-value ratio (your mortgage plus the new line) within the lender’s limit
- A current appraisal or valuation of your property
- An existing mortgage in good standing
Benefits
- Pay interest only on the funds you actually draw, not the entire approved line
- A reusable line of credit you can draw from, repay, and draw from again during the draw period
- Often a lower rate than credit cards or unsecured personal loans
- Flexible use — renovations, debt consolidation, education expenses, or a financial cushion for the unexpected
Common Scenarios
- A homeowner planning a kitchen or bathroom renovation who wants to draw funds in stages as contractor invoices come due.
- A homeowner consolidating higher-interest credit card debt into one lower-rate line.
- A homeowner who wants a standing line of credit available for emergencies without disturbing their existing low mortgage rate.
Frequently Asked Questions
What’s the difference between a HELOC and a home equity loan?
A home equity loan gives you a lump sum with a fixed rate and fixed payments. A HELOC is a revolving credit line, typically with a variable rate, that you draw from as needed during a set draw period before it converts to a repayment period.
How much equity do I need to qualify?
Lenders generally require you to retain a minimum amount of equity in your home after the HELOC is added, so the exact amount available depends on your home’s value, your current mortgage balance, and the lender’s combined loan-to-value limit.
Is HELOC interest tax-deductible?
It can be, in some cases, when funds are used to buy, build, or substantially improve the home securing the loan — but tax treatment depends on your individual situation. Please consult a qualified tax advisor for guidance specific to you.
Is the rate on a HELOC fixed or variable?
Most HELOCs carry a variable rate tied to an index, meaning your payment can change over time. Some lenders offer the option to lock a portion of the balance at a fixed rate; we can review what’s available for your situation.
Related Calculators
Run your own numbers before you apply:
Ready to Move Forward with Home Equity Line of Credit (HELOC)?
Start your application, or talk it through with a loan officer first — whichever fits where you are.