If you’ve built up equity in your home, you don’t necessarily need to refinance your entire first mortgage to access it. A second mortgage or home equity line of credit (HELOC) lets you borrow against that equity while leaving your existing mortgage — and its rate — untouched.
Two ways to access your equity
- Home Equity Loan (second mortgage): A lump-sum loan with a fixed rate and fixed monthly payment, separate from your first mortgage. Good for a known, one-time expense.
- HELOC (Home Equity Line of Credit): A revolving line of credit you draw from as needed, similar to a credit card, typically with a variable rate. Good for ongoing or uncertain expenses, since you only pay interest on what you actually draw.
Common reasons homeowners use their equity
- Home renovations or repairs
- Consolidating higher-interest debt
- Covering education expenses
- Funding a down payment on an investment property
- Major purchases or unexpected expenses
How this differs from a cash-out refinance
A cash-out refinance replaces your entire first mortgage with a new, larger one — which only makes sense if today’s rates are competitive with what you already have. A second mortgage or HELOC leaves your existing first mortgage exactly as it is, which is usually the better move if you already have a strong rate you don’t want to disturb.
We offer competitive rates on both second mortgage and HELOC programs.
