Home Equity Line of Credit (HELOC) – Flexible Financing Using Your Home’s Value
Need cash for a big project or unexpected expenses? A Home Equity Line of Credit (HELOC) lets you borrow against your home’s equity and access funds as needed — giving you financial flexibility without refinancing your first mortgage.
At American Hero Home Loans, I help homeowners, Veterans, and first responders tap into their home’s equity with affordable terms and personal support. Whether you’re upgrading your home, consolidating debt, or paying for education, a HELOC could be the solution you need.
What Is a HELOC?
A Home Equity Line of Credit is a revolving credit line secured by your home. It works like a credit card — you borrow what you need, when you need it — up to a pre-approved limit based on your home’s value.
Unlike a cash-out refinance, a HELOC does not replace your first mortgage. Instead, it adds a second loan based on the equity you’ve built.
HELOC Benefits
- Flexible Access: Borrow funds as you need them over a draw period (usually 5–10 years).
- Only Pay Interest on What You Use: This helps reduce unnecessary interest costs.
- Lower Interest Rates: Often cheaper than personal loans or credit cards.
- No Need to Refinance Your Current Mortgage: Keep your low interest rate and first loan intact.
- Use Funds for Any Purpose: Home repairs, college tuition, emergency costs, or debt consolidation.
How Much Can You Borrow?
Most lenders allow you to borrow up to 80–90% of your home’s appraised value minus your existing mortgage balance. The amount available to you depends on:
- Your home’s current market value
- Your remaining mortgage balance
- Your credit score and income
Is a HELOC Right for You?
You might consider a HELOC if you:
- Have a strong amount of equity in your home
- Want access to funds over time (not all at once)
- Prefer to keep your first mortgage untouched
- Want the flexibility to repay on your own schedule
Ready to Apply for a HELOC? Click Here.
How a HELOC Differs from a Cash-Out Refinance
| Feature | HELOC | Cash-Out Refinance |
|---|---|---|
| Loan Structure | Second loan, revolving line of credit | Replaces existing mortgage with new one |
| Payment Type | Interest-only during draw period | Fixed or variable monthly mortgage payment |
| Best For | Ongoing or unexpected expenses | Large one-time cash needs or loan reset |
Let’s Explore Your Equity Options Together
I’ll help you evaluate whether a HELOC, cash-out refinance, or another option is right for your goals. With honest guidance and real answers, we’ll find the best fit for your budget and long-term plans.
📞 Call or text Scott Swinford: 219-695-0369
📧 Email: sswinford@hancockmortgage.com
📝 Start Your Equity Review Online
💬 Schedule a Free Consultation
