HELOC & HELON - FLEXIBLE ACCESS TO YOUR HOME'S EQUITY
Choose a revolving line (HELOC) or fixed second mortgage (HELOAN).
What is a HELOC/HELOAN?
A HELOC is a line of credit you draw as needed; interest usually accrues only on what you use. A HELOAN is a fixed-rate second mortgage with predictable payments.
PROS
Keep your existing low first-mortgage rate
Pay interest only on drawn balances (HELOCs)
Fixed-rate stability (HELOANs)
CONSIDERATIONS
Variable rates & draw/repay periods on many HELOCs
CLTV limits apply
Closing costs/early-closure fees may apply
BASIC ELIGIBILITY
Sufficient equity & acceptable credit
Verifiable income & reasonable DTI
Property/occupancy within guidelines
CALIFORNIA NOTES
Insurance availability/wildfire zones can affect timing/costs
Condo/HOA docs may be required
Frequently Asked Questions
Some programs allow.
Some offer conversion options