A HELOC, or home equity line of credit, lets you borrow against the equity in your home as a revolving line, drawing and repaying as you need rather than taking one lump sum. It is flexible, and it takes discipline. Here is how it works and how it differs from a mortgage.
Borrow, repay, and borrow again up to your limit.
Your home equity backs the line.
You pay interest only on the amount you have drawn.
Draw as you need it, for renovations, expenses, or opportunities.
Your available limit is based on a share of your home's value.
A lump sum with a set payment schedule and, usually, a fixed amortization (the years to repay). Structured and predictable, you know exactly what you owe and when it is paid off.
A revolving limit you draw from and repay on your own schedule, usually at a variable rate, with interest only on what you use. Flexible, but easy to lean on, so it takes discipline.
A HELOC is limited to a share of your home's value, often combined with your mortgage. We will work out your room.
Often interest-only on what you have drawn, though paying down principal is wise when you can.
Good for flexible or recurring needs; a lump-sum goal may suit a refinance better.
Tell us what you would use it for, and we will look at whether a HELOC, a refinance, or another option suits you best. A licensed member of our team will follow up.
Start a conversationInformation here is general and educational. It is not financial, legal, or lending advice, and it is not an offer of financing. HELOC limits, rates, and payment terms vary by lender and are typically capped at a share of your home's value; a HELOC is secured against your home. Any figures are illustrative only. All financing is subject to lender review, property review, and supporting documentation. Submission of a form does not guarantee approval or financing.