Loan Programs

Home Equity

Use the equity you've built without starting over on your mortgage.

Equity is the part of your home's value you own outright. There are a few ways to borrow against it, and the right one depends on how much you need, how you plan to use it and whether you want to keep your current first mortgage.

Kam lays the options side by side so you can see the trade-offs before you commit.

Options

Home Equity options

HELOC

A revolving line of credit you draw from as needed during the draw period, paying interest only on what you use. Rates are usually variable.

Home equity loan

A lump sum with a fixed rate and a set repayment schedule, sitting behind your first mortgage.

Cash-out refinance

Replaces your first mortgage with a larger one. Makes the most sense when today's rates beat your current rate.

Requirements

What lenders look for

1Enough equityLenders limit the combined balance of your first mortgage and the new loan relative to your home's value.

2Credit historyMost home equity lenders look for good credit. Higher scores usually mean better pricing.

3Debt-to-income ratioThe new payment has to fit alongside your existing debts and income.

4DocumentationExpect to verify income and assets and, in most cases, order an appraisal.

Benefits

Why borrowers choose it

Keep your first mortgage

A HELOC or home equity loan leaves the rate on your first mortgage untouched.

Borrow as you go

With a HELOC you only pay interest on what you draw, which suits projects billed in stages.

Possible tax benefits

Interest may be deductible when funds are used to buy, build or improve the home. Check with your tax advisor.

Guidelines shown are typical and vary by lender. Loan approval, rates and terms depend on credit, income, property and lender guidelines. Program availability and requirements are subject to change. This is not a commitment to lend.

Ready to take the next step?

Let's find the right mortgage solution for you.

Get a Quote Apply Now Book a Call