Who this may fit
A home equity loan generally provides a lump sum with a defined repayment schedule. A home equity line of credit (HELOC) lets you draw eligible funds during a draw period. Both use your home as collateral and can add a separate payment while leaving an existing first mortgage in place. Ask which products are currently available.
Preparation checklist
- Current mortgage and other lien statements
- Estimated home value, income, debts, and credit information
- Amount needed, intended use, and a repayment plan
How to compare this option
Compare the combined payments, fees, lien limits, and total borrowing cost against cash-out refinancing. HELOCs commonly have variable rates, so payments can rise. An introductory rate can expire, and the payment may increase when the draw period ends and repayment begins.
Sharing documents safely
Use the preparation checklist above. Use the secure application portal for financial documents; please do not send statements or tax returns through the general inquiry form.
Frequently asked questions
How much can I borrow?
The lender sets a combined loan-to-value limit covering the first mortgage and other liens. Subtract existing balances from the permitted total; qualification and property review still apply.
Will my first mortgage change?
A separate second lien generally leaves the first loan in place. A cash-out refinance replaces it. Compare both before giving up an existing rate.
Is interest tax deductible?
Deductibility depends on how funds are used and your tax situation. Get advice from a qualified tax professional rather than assuming all equity borrowing qualifies.
Is debt consolidation always a good idea?
No. It can turn unsecured debt into debt secured by your home and extend repayment. Compare fees, total interest, payment changes, and the risk of rebuilding credit-card balances. Missing secured payments can put the home at risk.
Sources & further reading
Educational review: October 30, 2026. Guidelines and availability can change. Lender examples explain product structures and do not establish IMS availability or quoted terms.
Program availability, fees, and qualification requirements vary by lender, property, location, and borrower. These guides are educational, not an offer, quote, eligibility decision, or commitment to lend.