Home Equity / HELOC
Turn the value you've built in your home into money you can use.
If your home is worth more than you owe on it, the difference is your equity. A home-equity loan pays it out as a lump sum with a fixed payment; a HELOC (home equity line of credit) works more like a credit card you draw from as needed. Both are secured by your home and usually leave your existing first mortgage — and its rate — untouched.
How it works
HELOC vs. home-equity loan
A HELOC gives you a flexible credit line you borrow against during a draw period, paying interest only on what you use. A home-equity loan gives you the full amount upfront at a fixed rate with predictable payments.
Keep your first mortgage as-is
Because these are second liens, you can access equity without refinancing away a low rate on your existing mortgage — often the main reason people choose them over a cash-out refinance.
Your home is the collateral
Rates are usually lower than credit cards or personal loans because the loan is secured by your home — which also means falling behind puts the home at risk. Borrow with a plan.
A good fit if you're…
- Renovations and home improvements
- Consolidating higher-interest debt
- Keeping a low first-mortgage rate while accessing cash
This page is educational and doesn't constitute financial advice or a loan offer. Honest Loans is a lead-generation service, not a lender — program availability, rates, and terms come solely from independent lending partners and are subject to their approval and requirements.
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