How to tap your home equity without refinancing
Keep your mortgage. Explore a different way to access the value in your home.
Home equity is the difference between your property’s value and the debt secured against it. A home equity loan or line of credit can let you borrow against part of that value without replacing your existing mortgage.
A HELOC typically offers a revolving credit limit during a draw period. Many have variable interest rates. A home equity loan usually provides a lump sum with fixed payments, though terms vary by provider.
Keeping your original mortgage may be useful if its interest rate is lower than rates available on a new mortgage. Compare the combined cost of both loans, including fees, rather than focusing on one advertised rate.
Lenders consider credit, income, debt obligations, available equity, and property details. The calculator on this site uses an illustrative 85% combined loan-to-value limit, not a guarantee of eligibility.
Your home secures the borrowing, so missed payments could lead to foreclosure. Review several written offers, understand repayment changes, and make sure the debt fits your budget before accepting.
For general educational purposes only. This is not personalized financial, insurance, or legal advice.