Mortgage Loan
A HELOC, which allows you to borrow as needed, is ideal for continuous projects or expenses, like home improvement projects that can enhance the value of your property.
Tied to Your Down Payment
Loan Amount
10-30 Years
Loan Term
1-2 Months
Time to Fund
Tied to Your Loan Term
Interest Rate
What is Home Equity Line of Credit?
A HELOC, or home equity line of credit, is a revolving line of credit that allows you to use your home as collateral. This type of loan is often used to finance large expenses or to consolidate higher-interest debt, such as credit card debt. Compared to other types of loans, a HELOC usually has a lower interest rate, and in some cases, the interest may be tax deductible.
What are the Benefits?
You could qualify for a low APR
Although mortgage interest rates have increased significantly since 2022, HELOC rates tend to remain lower and have lower initial costs compared to credit cards, making them appealing options for consolidating debt or funding ongoing renovation projects.
You can borrow only what you need
With a HELOC, you have the flexibility to use the funds as you need them. Unlike home equity loans or personal loans that require you to take out a lump sum, a HELOC allows you to borrow the cash you need in increments, giving you the option to borrow only what you need as you go.
Flexible repayment options
HELOCs typically offer flexible repayment options that depend on the lender and the amount you borrow. The HELOC can last up to 30 years, with only interest payments required during the draw period (usually the first 10 years). However, you have the choice to pay down the principal balance during this time to reduce your remaining balance when the repayment period begins.