Home Equity Line of Credit (HELOC)
A HELOC is a line of credit secured by your home. You draw what you need, pay interest only on what you use, and keep your current first mortgage and its rate.
Rates change daily. Talk to a real lender, Mon-Fri, 9 AM-6 PM PT.
HELOC at a glance
| Rate type | Usually variable |
|---|---|
| How it works | A draw period, then a repayment period |
| Draw period | Subject to guidelines |
| Repayment period | Subject to guidelines |
| Line amount | Up to $500,000 |
| Property types | Subject to guidelines |
Program terms vary and change. Get a quote for your options.
Debt consolidation calculator: see what you could saveHELOC vs home equity loan vs cash-out refinance
Same comparison as the home equity hub, including Fast-Track Digital HELOC.
| HELOC | Home equity loan (HELOAN) | Fast-Track Digital HELOC | Cash-out refinance | |
|---|---|---|---|---|
| What you get | A line of credit you draw on | A lump sum | A line of credit with a digital application | A new, larger first mortgage, with the difference paid to you in cash |
| Rate | Usually variable | Usually fixed | Variable | Fixed or adjustable |
| Your first mortgage | Stays as is | Stays as is | Subject to guidelines | Replaced |
| Amount | Up to $500,000 | Subject to guidelines | Subject to guidelines | Subject to guidelines |
| Term | Subject to guidelines | Subject to guidelines | Subject to guidelines | Typically 15 to 30 years |
| Best when | Your first-mortgage rate is low and your needs are ongoing or uncertain | You need a set amount with a fixed payment | You want a fast, paperless HELOC | Today's rates beat your current rate, or you need a large amount |
Common uses
Renovations, paying off higher-interest debt, a down payment on another property, and a cash cushion.
Things to know
The rate can change. Payments go up when the draw period ends. Your home secures the line.
What we need
A current mortgage statement, homeowner's insurance, income documents and photo ID. More may be needed depending on your file.
Frequently asked questions
How much can I borrow?
It depends on your home's value and what you owe. A HELOC line can go up to $500,000, subject to guidelines.
Is the rate fixed or variable?
Most HELOCs have a variable rate. Some programs let you fix part of the balance.
What's the draw period?
It is the time you can draw on the line, followed by a repayment period. Both are subject to guidelines.
Can I get a HELOC on a rental?
Some programs allow investment properties. Eligible property types are subject to guidelines.
HELOC or cash-out refinance?
If your first mortgage rate is low, a HELOC lets you keep it. A cash-out refinance replaces your whole first mortgage.
Does a HELOC affect my first mortgage?
No. Your first mortgage stays as is; the HELOC is a separate lien.
Rates change daily. Talk to a real lender, Mon-Fri, 9 AM-6 PM PT.
Reviewed by Roland Suncire, Founder and President, NMLS 1196184. Last updated October 2026. Reviews