Put equity in context

Home Equity Loans & HELOCs

Home equity financing may let you borrow without replacing your existing first mortgage. Understand how a second mortgage or HELOC would affect your total debt and monthly budget.

Talk with a loan officer Explore the details

Understand your options

How the options work.

Home equity loan / fixed second mortgage

A home equity loan generally provides a lump sum with scheduled repayment. Fixed-rate options have a set interest rate and scheduled principal-and-interest payment. Review loan costs and the payment alongside your existing mortgage.

Home equity line of credit

A HELOC is revolving credit against available home equity. Borrowing is permitted during a defined draw period, subject to the agreement. Rates are often variable, and payments may rise when the rate changes or repayment begins.

Prepare for the conversation

What to review together.

Review the home’s value, all existing liens, income, credit, and the equity you would retain.
Compare the amount needed, timing of expenses, upfront fees, ongoing charges, and repayment terms.
For a HELOC, ask about draw limits, minimum advances, variable-rate caps, and payments after the draw period.

Common questions

A little more clarity.

General information can help you prepare. Your loan officer can explain the requirements for your particular property, finances, and program.

Does this replace my current mortgage?

A second mortgage or HELOC is generally additional borrowing, while a cash-out refinance replaces the current first mortgage. Keeping the first mortgage does not remove the new loan’s payment, costs, or risk.

Is a HELOC payment fixed?

Not necessarily. HELOCs commonly have variable rates. Payments can change during the draw period and may increase when repayment begins. Ask about any available fixed-rate conversion option and its terms.

How much equity can I borrow?

Available borrowing depends on the property value, existing debt, permitted combined loan-to-value ratio, income, credit, and program rules. An appraisal and underwriting review may be required. This page does not quote a loan amount.

Mortgage lending, made personal.

Let’s talk about your next step.

Share your goals with an East Coast Capital mortgage professional. We can review available options and explain what comes next.

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Educational information only; not a rate quote, loan approval, or commitment to lend. Program availability, eligibility, rates, fees, and terms depend on underwriting, property, and state availability. Your situation may require different documentation or disclosures. East Coast Capital is not affiliated with or endorsed by HUD, FHA, VA, or another government agency. NMLS ID #1403.