HELOC
A line of credit generally has a draw period, variable rate, minimum payment rules, and later repayment period. Terms vary.
Mortgage Strategy
Tap equity without replacing the first mortgage
A HELOC or home-equity loan may let an eligible homeowner access equity while keeping an existing first mortgage in place.
Home-equity loan
A closed-end second mortgage may provide a lump sum with a fixed or variable rate and scheduled repayment.
Use debt carefully
Home improvements, investment, and debt consolidation can be valid goals, but the home secures the new obligation and payment risk matters.
Compare the alternatives
Review HELOC, home-equity loan, cash-out refinance, unsecured debt, fees, rate changes, tax advice, and payoff plan.
Written by Marta Lillard
25+ years of mortgage experience, explained in plain English.
Mortgage Broker · First Coast Mortgage Funding · NMLS #879436 · Licensed in Florida and Georgia
Questions about your options?