Use your home's equity.
Keep your low rate.

A HELOC, or home equity line of credit, is a revolving line of credit secured by your home. You are approved for a limit based on your equity, draw most of it at closing, and make interest-only payments on your balance during the draw period. Your first mortgage stays as it is.

No. A HELOC is a separate second lien that sits behind your first mortgage, so your current loan, rate, and payment stay the same. That is the main reason homeowners with a low first mortgage rate look at a HELOC instead of a cash-out refinance, which replaces the whole loan.

It depends on your home value, what you owe, and the program's maximum combined loan-to-value, or CLTV. CLTV is your mortgage balance plus the new line, divided by your home's value. Based on current terms, the limit is up to 90% CLTV on a primary residence, with lines from $25,000 up to $750,000. The rate estimator on this page runs your numbers.

Based on current terms, the minimum credit score is typically 600 for a primary residence, 640 for a second home, and 640 for an investment property. The maximum CLTV also depends on your score, and a higher score with more equity usually means a lower margin. Every file is subject to underwriting review.

It may be an option. Investment and rental properties in Georgia and Alabama can qualify, usually with a higher credit score requirement and a lower maximum CLTV than a primary residence (currently up to 90% CLTV). If you are building a portfolio, I can also walk you through DSCR and fix-and-flip financing.

A HELOC rate is variable. It equals an index, the WSJ Prime (currently 7.00%), plus a margin set when you open the line based on property type, credit, and CLTV. The margin stays the same. When the index moves, your rate and payment can move with it, but never above 18.00% or below 4.00%.

The draw period is the window when you can borrow from the line, 3 years on current terms. Interest-only payments are available during that time. At closing you draw at least 75% of the line, and anything you repay can be drawn again. When it ends, the repayment period begins and runs 17 years. You can no longer draw, and payments cover principal and interest until the balance is paid off.

Using the estimator on this site does not pull your credit, and neither does talking with me. Prequalifying for the application uses a soft credit check, which does not affect your score. A hard credit pull happens only when you move forward with a full application, and I'll tell you before it does.

Based on current terms, funds can be available in as soon as 5 to 15 days. Timing depends on your property valuation, title work, and how quickly documents come back, so treat it as an estimate, not a promise.

Most homeowners use a HELOC for home improvements, paying down higher-interest debt, a down payment on another property, tuition, or a cushion for unexpected expenses. Because the line is secured by your home, my goal is to make sure the plan for the money makes sense before you draw.

Typically a government-issued ID, recent pay stubs or other proof of income, W-2s or tax returns, your current mortgage statement, homeowners insurance details, and property tax information. Self-employed borrowers and investors may need a little more. I'll give you the exact list for your situation so you only gather what you need.

A HELOC is a revolving line, usually with a variable rate, that keeps your first mortgage in place. A home equity loan is a one-time lump sum, usually at a fixed rate, also as a second mortgage. A cash-out refinance replaces your first mortgage with a new, larger loan at today's rates.