HELOC
How It Works
Revolving line of credit secured by your home.
Existing First Mortgage
Typically remains in place.
Access to Funds
Borrow as needed during the draw period, up to your approved limit.
Repayment
Payments depend on the draw and repayment periods and loan terms.
Cash-Out Refinance
How It Works
Replaces your existing mortgage with a larger loan.
Existing First Mortgage
Paid off through the new refinance.
Access to Funds
Eligible cash proceeds generally received at closing.
Repayment
Regular payments under the new mortgage terms.
Reverse Mortgage
How It Works
Allows eligible older homeowners to borrow against home equity.
Existing Mortgage
Existing liens generally must be paid off as part of the transaction.
Access to Funds
Payment options vary by program and available proceeds.
Repayment
No required monthly principal and interest payments for a HECM, but taxes, insurance, maintenance, and other obligations continue.