A flexible way to access the equity you've built.

How a HELOC fits alongside your existing mortgage

Unlike a cash-out refinance, a HELOC does not touch your current first mortgage. It is recorded as a separate lien, meaning you keep your existing rate and terms on the first loan while adding a new, second line of credit against your equity.

That structure can matter a great deal if your existing mortgage has terms you want to preserve, since a cash-out refinance would replace the whole loan.

Draw period versus repayment period

Many HELOCs are structured in two phases: a draw period, during which you can borrow against the line and often make interest-only or minimum payments, and a repayment period, during which you pay down the balance on a set schedule. Exact structures vary by lender, so it's worth understanding the specific terms of any program you're considering before you sign.

Comparing a HELOC to a cash-out refinance

Both let you tap home equity, but they work differently. A cash-out refinance replaces your entire mortgage with a new one at a new rate and term, delivering funds as a lump sum at closing. A HELOC leaves your first mortgage alone and gives you a flexible line to draw from over time.

• HELOC: revolving line, leaves first mortgage in place, often variable rate structure
• Cash-out refinance: replaces the entire mortgage, lump sum, new rate and term
• Home equity loan: lump sum second lien with a fixed repayment schedule

Questions worth answering before you apply

How much equity do you actually have, how do you plan to use the funds, and how comfortable are you with a line of credit's structure compared to a lump sum? Working through these questions up front helps us point you toward the right product.