All loan programs
Quick answer
- Who it may fit
- Owners with a first-mortgage rate worth protecting
- Down payment
- Cash to close depends on the program, the property and your file — we quote your scenario before you apply.
- Main benefit
- The existing first mortgage stays in place
- Main tradeoff
- HELOC rates are typically variable, so the payment can move
A home equity line of credit is a revolving second lien: you draw what you need during a draw period, then repay over a set term. A closed-end home equity loan instead advances a lump sum at a fixed rate. Both sit behind your existing first mortgage, so a low first-mortgage rate stays untouched.
- Owners with a first-mortgage rate worth protecting
- Owners funding renovations in stages rather than all at once
- Owners who want standby access to funds rather than a lump sum
- The existing first mortgage stays in place
- A line of credit charges interest only on what has actually been drawn
- Closing costs are often lower than a full first-mortgage refinance
- HELOC rates are typically variable, so the payment can move
- Payments usually rise when the draw period ends and repayment begins
- The line is secured by your home
- Some lines carry annual, inactivity or early-closure fees — read the terms
These are the factors an underwriter typically reviews. They are not a checklist of requirements, and meeting them does not guarantee eligibility or approval.
- Sufficient equity after accounting for the existing first mortgage
- Credit and income review
- Combined loan-to-value within the lender's limits
- An acceptable property and valuation
All loans are subject to credit, income, property and underwriting approval. Nothing on this page is a loan offer, an approval, a rate lock or a commitment to lend. Programs, rates and terms are subject to change without notice.