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Equity options

Unlock equity. Keep the rate you locked.

Why refinance an entire loan at today's rates when you can pull equity through a second mortgage or HELOC instead? It's often the smarter, cheaper path for renovations, debt consolidation, or a major purchase.

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Why this is often the smarter path

If your first mortgage is at a great rate, refinancing it just to access equity could cost you thousands in interest over the life of the loan. A second mortgage or HELOC lets you borrow against your equity while keeping that low first-rate intact.

Common uses

Home renovations. Debt consolidation. Tuition. Investment-property down payments. Bridge financing. Major one-time expenses.

What we'll look at

Your home's current value, your first-mortgage balance, your credit profile, and your goal. From there, we'll recommend an open HELOC, a closed second, or — if it actually makes sense — a full refinance.

Highlights

What you should know

HELOC (open line)

Borrow as you need. Pay back, redraw — flexible like a credit line, secured by your home equity.

Closed second

A fixed-rate second mortgage delivered as a lump sum. Predictable payments. Set term.

Keep your first

No need to disturb a low first-mortgage rate. The second simply sits behind it.

FAQ

Frequently asked questions

What's the difference between a HELOC and a second mortgage?
A HELOC (Home Equity Line of Credit) is a revolving credit line — you can draw, repay, and redraw against your equity, often with a variable rate. A closed-end second mortgage is a one-time lump sum delivered at closing with a fixed rate and set term, paid back like a typical mortgage.
Can I take out a HELOC without refinancing my first mortgage?
Yes — that's one of the biggest reasons to use a HELOC or second mortgage instead of a cash-out refinance. If your first mortgage is at a great rate, you don't have to disturb it. The new second simply sits behind it.
How much equity do I need for a HELOC or second mortgage?
Most lenders want your combined loan-to-value (CLTV) — your first mortgage plus the new second — to stay at or below 80% to 90% of your home's value. The exact cap depends on the lender, your credit, and the property type.
Are HELOC rates fixed or variable?
HELOC rates are typically variable and tied to the Prime Rate plus a margin. Some lenders offer fixed-rate HELOC conversion options for portions of your balance. Closed-end second mortgages, by contrast, usually carry a fixed rate.
What can I use a HELOC for?
Anything legal — most commonly home renovations, debt consolidation, tuition, investment-property down payments, or major one-time expenses. Interest may be tax-deductible when funds are used to substantially improve the home (consult your tax advisor).
Will a HELOC affect my credit?
Applying for a HELOC requires a credit pull, which causes a small temporary dip. Once open, a HELOC reports as installment or revolving credit (depending on the lender), and your usage and payment history affect your score over time — same as any credit account.
Is a HELOC better than a personal loan?
Usually yes if you have meaningful home equity. HELOCs are secured by your home, so rates are typically much lower than unsecured personal loans, and limits are often higher. The trade-off is that your home is the collateral, so the consequences of default are more serious.
Can I get a HELOC if I'm self-employed?
Yes. Self-employed borrowers can qualify with two years of tax returns and other documentation. Bank-statement programs are also available with some lenders for self-employed borrowers who don't show full income on their tax returns.

Talk it through with our team.

Five minutes on the phone, or a few questions online. No pressure, no credit pull required.

Explore equity options Call (704) 800-4719