LOAN PROGRAMS · HELOC
HELOC.Use your equity. Keep your mortgage.
A home equity line of credit, or HELOC, lets you borrow against your home's equity as you need it, while keeping your current first mortgage. It works like a credit line secured by your home.
By Abdallah H. Fragomeno, Mortgage Advisor, NMLS ID 366447 (opens in a new tab) · PREMIER Financial Group of Florida, LLC, NMLS ID 1318440 · Updated
Have questions? No problem.
HELOCs in Miami: the short answer
- What it is
- A line of credit secured by your home, which you draw from as needed.
- Your first mortgage
- Stays in place. A HELOC is a separate, second loan.
- Rates
- Usually variable, so payments can change.
- Your home is collateral
- If you do not repay, you could lose your home.
Who itfits best.
Low current rate
You want to keep your first mortgage as it is.
Projects over time
Renovations or expenses that come in stages.
Flexible access
Borrow, repay and borrow again during the draw period.
How itworks.
Draw period
During the draw period, you can borrow up to your credit limit as you need it.
Repayment period
After the draw period, you repay what you borrowed.
Variable rates
Most HELOC rates are variable, so your payment can change.
Your equity
Your credit limit depends on your home's value, what you owe and your credit.
Good to know.Before you decide.
Your home is the collateral
If you do not repay, you could lose your home.
Required disclosures
You will receive the required HELOC disclosures, including rate and fee details, when you apply.
Questions,answered.
What is the difference between a HELOC and a home equity loan?
A HELOC is a credit line you draw from as needed. A home equity loan gives you a lump sum with a set repayment schedule.
Can I get a HELOC on an investment property?
Some lenders offer them. Requirements are stricter than for a primary home.
HELOC or cash-out refinance?
If your first mortgage has a low rate, a HELOC lets you keep it. If you need to change the first mortgage anyway, a cash-out refinance may make more sense.
How much can I borrow with a HELOC?
It depends on your home's value, what you owe on your first mortgage, your credit and the lender's limits on combined borrowing.
Is HELOC interest tax-deductible?
It can be when the money is used to buy, build or substantially improve the home that secures it, under IRS rules. See IRS Publication 936 (opens in a new tab) and ask your tax advisor.
Can I get a fixed rate on a HELOC?
Some lenders let you lock part of your balance at a fixed rate. Otherwise HELOC rates are usually variable.
How fast can a HELOC close?
Often faster than a full refinance, because your first mortgage stays the same. Timing depends on the lender, valuation and title.
HELOC vs. home equity loan vs. cash-out refinance?
A HELOC is a credit line; a home equity loan is a lump sum with a set schedule; a cash-out refinance replaces your first mortgage. The CFPB explains HELOCs (opens in a new tab), and we compare all three with you.
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YOUR MORTGAGE ADVISOR
Nice to meet you.I'm Abdallah.
Your trusted Miami mortgage advisor. I'm here to make your home financing simple and stress-free.
Abdallah H. Fragomeno · Mortgage Advisor · NMLS ID 366447
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