HOME EQUITY
HELOCs, home equity loans & cash-out refinancing.
Understand the ways to access your equity before you choose a loan.
START WITH UNDERSTANDING
The details matter.
A HELOC is a line of credit; a home-equity loan generally provides a lump sum. A cash-out refinance replaces your existing mortgage. Each changes your borrowing costs and repayment obligations in a different way.
Your home secures the debt. Compare fees, total interest, payment changes, and draw requirements. Some HELOCs require a full initial draw.
Learn more: Consumer Financial Protection Bureau ↗
Three questions
worth asking.
- Do you want to keep your current first mortgage?
- Do you need one lump sum or access to funds over time?
- How will the new payment fit alongside your other obligations?
Can you keep your first mortgage?
A second-lien HELOC or home equity loan can leave your existing first mortgage in place. A cash-out refinance replaces it. Start by comparing the cost of borrowing the additional amount with the cost of refinancing your full balance.
Ask for a comparison that includes both payments, closing costs, repayment periods and how the balance changes. A lower payment can reflect a longer repayment period rather than lower total cost.
What should you gather?
Bring your mortgage statement, an estimate of the home's value, the amount you need and a comfortable payment range. Discuss the property use and any other liens early. The lender's valuation and underwriting determine availability.
A LITTLE CLARITY GOES A LONG WAY
Three ways to use
your home equity.
Compare the structure first.
Then let's look at your individual numbers.
| What to consider | HELOC | Home-equity loan | Cash-out refinance |
|---|---|---|---|
| How it works | A line of credit secured by your home | A lump-sum loan secured by your home | A new mortgage that replaces your existing loan |
| Existing first mortgage | Typically stays in place | Typically stays in place | Replaced with new terms |
| Access to funds | Draw rules vary by program | Generally one initial lump sum | Cash remaining after payoff and costs |
| Key question | How do the rate and repayment terms change? | What is the additional monthly payment? | Does replacing the first mortgage make sense? |
Loan structures vary. Some HELOC programs require a full initial draw. Compare rates, fees, total interest, and repayment obligations—not just the monthly payment. Your home secures the debt.
Explore my home-equity options ↗Jay Ruess · NMLS #1420294 · DRE #01808757
West Capital Lending, Inc. · NMLS #1566096 · DRE #02022356
Main: (949) 800-6162 · Equal Housing Lender. Subject to credit approval and program requirements.
LET’S LOOK AT YOUR SITUATION
You don’t have to
sort it out alone.
Compare a HELOC and a home equity loan around the amount you need, draw requirements, payment changes and repayment plan.