Loan Program
HELOC and Home Equity Loans
A home equity line of credit (HELOC) or home equity loan lets you borrow against your equity while leaving your existing first mortgage in place. That matters for Downriver homeowners who locked in a low first mortgage rate and do not want to refinance the whole balance to access cash.
What it is
- A HELOC is a revolving credit line secured by your home with a draw period.
- A home equity loan is a fixed lump sum with a fixed payment.
- Both sit behind your existing first mortgage.
Who it's for
- Owners with a low first mortgage rate they want to keep.
- Homeowners funding a renovation in phases.
- Owners who want standby access to funds rather than a lump sum.
Typical requirements
- Sufficient equity after the combined loan amounts.
- Qualifying credit and documented income.
- A property valuation, which is sometimes an automated one.
Guidelines vary by lender and change over time. Meeting these items does not guarantee approval, and all loans are subject to credit and property approval.
Advantages
- Keeps your existing first mortgage untouched.
- HELOC funds can be drawn only as needed.
- Typically faster and less costly to close than a full refinance.
Trade-offs
- HELOC rates are usually variable and can change.
- Your home secures the debt.
- Payments can rise sharply when the draw period ends.
FAQ
HELOC and Home Equity Loans: common questions
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