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Buy
Apply Now
Ready to start your home buying journey? Apply now and get pre-approved for your mortgage.
Purchase Rates
Know the rates, know your options. Start building your homeownership plan today.
Monthly Mortgage Calculator
Get a clear picture of your monthly mortgage payment using your rate, credit score, and down payment information.
Affordability Calculator
Not sure what fits your budget? This calculator factors in your income, debts, and down payment to help you find the right price range.
Refinance
Apply Now
Ready to lower your rate or tap into your equity? Apply now and start your refinance journey with confidence.
Refinance Rates
Rates can change fast. See today’s options and discover potential savings on your mortgage.
Refinance Mortgage Calculator
Wondering how refinancing will affect your monthly payments? See how much you can save.
Cash-Out Refinance Calculator
See how much equity you can tap into. Estimate your new mortgage payment and compare loan options.
Rates
Resources
Calculators
Free, interactive mortgage calculators that can help you along the journey toward your home ownership goals.
Blog
Learn more. Stress less. Our blog breaks down what you need to know to buy, refinance, or plan ahead.
FAQs
Check out our FAQs to learn more about Total Mortgage, mortgage lending, home refinancing, and more.
Loan Programs
Navigate all our programs and find the perfect loan for you.
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About
HELOC
<p class="MsoNormal">Tapping into your home equity can free up funds for everything from home renovations to education costs.</p>
Benefits
Flexible Borrowing
Borrow as needed during the draw period, similar to a credit card.
Lower Interest Rates
Generally offers lower interest rates compared to unsecured loans or credit cards.
Potential Tax Benefits
Interest may be tax-deductible when used for home improvements (consult a tax advisor).
Large Borrowing Capacity
Access to a significant amount of funds based on your home's equity.
HELOC Information
<p>A Home Equity Line of Credit (HELOC) allows you to borrow against your home's equity, providing flexibility for major expenses. To better understand how a HELOC can fit into your financial plans, you can start by <a href="/apply">speaking to one of our seasoned experts</a>.</p>
How HELOCs Work
<p>HELOCs have two phases:</p><ul><li><strong>Draw Period:</strong> Typically 10 years, during which you can borrow funds up to your credit limit.</li><li><strong>Repayment Period:</strong> Usually 20 years, where you can no longer borrow and must repay the principal and interest.</li></ul>
HELOC Requirements
<ul><li>Credit Score: Generally 620 or higher</li><li>Debt-to-Income Ratio: Typically 40% or less</li><li>Home Value: Should be at least 15% higher than the amount you owe</li><li>Equity: Typically, you can borrow up to 85% of your home's value minus the amount you owe</li></ul>
Accessing Your HELOC
<p>You can access your HELOC funds through:</p><ul><li>Online transfers</li><li>ATM card</li><li>Point-of-Sale (POS) card</li><li>Checks (if issued by the lender)</li></ul>
Pros and Cons of HELOCs
<p>Understanding the advantages and disadvantages of a HELOC can help you make an informed decision.</p>
Pros
<ul><li>Flexibility to use funds for various purposes</li><li>Lower interest rates compared to unsecured loans</li><li>Potential tax deductions for home improvements</li><li>Only pay interest on the amount borrowed</li><li>Access to a large amount of credit</li></ul>
Cons
<ul><li>Risk of foreclosure if unable to repay</li><li>Variable interest rates can lead to higher payments</li><li>Potential for overborrowing</li><li>Additional costs like annual fees and closing costs</li><li>Reduces home equity</li></ul>