HELOC or HELOAN
Choose a revolving HELOC or a fixed-rate Home Equity Loan
Equal Housing Lender • Loans originated by Nick Petrosov (NMLS #2015537) through Guild Mortgage Company (NMLS #3274)
Licensed in California. This is not a commitment to lend. All loans subject to underwriting and credit approval.
HELOC or HELOAN Overview
Use your home equity in two ways: a HELOC (revolving line of credit with variable rate and draw period) for flexible, on‑demand funding; or a HELOAN (fixed‑rate, lump‑sum second mortgage) for predictable payments. We'll help you pick the structure that fits your project, timeline, and risk tolerance.
Key Program Details
Min Down Payment
N/A
Min Credit Score
680+
Loan Limit
Up to 80-90% LTV
PMI/MIP Rules
N/A
Advantages
- HELOC: flexible draw and interest‑only during draw period
- HELOAN: fixed rate and predictable amortizing payment
- Often lower cost than personal loans or credit cards
- Possible tax deduction when used for qualifying improvements
Considerations
- HELOC variable rates can increase over time
- Second‑lien adds monthly obligation and reduces equity
- Closing costs may apply
- Qualification depends on CLTV, credit, and income
Who This Loan Is Best For
Quick Scenario Example
Example: $350K HELOAN at 5.625% for 30 yrs → $2,015/mo (P&I)
HELOC vs. HELOAN - What's the Difference?
HELOC (Home Equity Line of Credit)
- • Revolving line of credit; borrow, repay, borrow again
- • Variable rate is common; interest-only draw period
- • Flexible for ongoing projects or phased expenses
- • Closing costs typically lower than cash-out refi
HELOAN (Fixed-Rate Home Equity Loan)
- • Lump-sum second mortgage with fixed rate
- • Predictable monthly payment (amortizing)
- • Ideal for one-time projects or debt consolidation
- • Rate can be higher than first mortgage but fixed
Note: Rates and payments are examples only and for illustration. We'll quote your actual terms.
Ready to Apply for HELOC or HELOAN?
Let's discuss your options and get you pre-approved today.