HELOC & HELOAN
A HELOC (Home Equity Line of Credit) and a HELOAN (Home Equity Loan) are flexible alternatives to a traditional cash-out refinance, giving you access to your home’s equity without replacing your existing mortgage. With a HELOC, you can borrow only what you need, when you need it—similar to a credit card—making it ideal for ongoing projects or unexpected expenses. A HELOAN, on the other hand, provides a lump sum at a fixed rate, offering stability and predictable payments. Both options can be more cost-effective than a cash-out refinance since you’re not restarting your entire mortgage term or giving up a lower existing rate. For homeowners who want targeted access to equity with flexibility and control, a HELOC or HELOAN may be the smarter choice.
HELOC
A Home Equity Line of Credit (HELOC) is a revolving line of credit that lets you borrow against the equity you’ve built in your home. Similar to a credit card, you can draw funds as needed during the draw period, only paying interest on the amount you use. It offers flexibility for ongoing expenses like home improvements, education costs, or emergencies, while typically carrying lower rates than personal loans or credit cards.
HELOAN
A Home Equity Loan (HELOAN) allows you to borrow a lump sum of money against the equity in your home, with a fixed interest rate and set repayment term. This makes your monthly payments predictable and stable, which is ideal for large, one-time expenses like renovations or debt consolidation. It’s a straightforward way to access your equity without altering your existing mortgage.