If you bought your house when mortgage rates were sitting around 2% or 3%, you probably don’t want to give that interest rate up anytime soon.
But what happens when you need some cash? Maybe you’re planning a renovation, consolidating expensive credit card debt, or simply want access to some of the equity you’ve built in your home.
Here’s the good news: You may be able to get equity out of your home without refinancing your existing mortgage.
There are two ways I want to show you, and both can allow you to keep your current mortgage and its low interest rate.
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Updated for November 5 2026
Option 1: Use a Home Equity Line of Credit (HELOC)
The first option is a Home Equity Line of Credit, also called a HELOC. Think of it somewhat like a credit card, except you’re borrowing against the equity in your house.
Let’s say you qualify for a $100,000 HELOC.
You don’t necessarily have to borrow the entire $100,000. Maybe you only need $25,000 to renovate your kitchen.
With a HELOC, you can generally borrow what you need during the draw period, pay it back, and borrow again as long as your line remains available.
And here’s what makes this interesting: You’re typically charged interest only on the amount you’ve actually borrowed.
Many HELOCs also offer interest-only payments during the draw period, although terms vary depending on the lender.
The downside? Most HELOCs have variable interest rates. Your rate and payment could change over time, and payments may increase significantly when the draw period ends.
You can estimate your HELOC payments here to get a better understanding of the numbers.
Option 2: Get a Fixed-Rate Home Equity Loan
The second option is a Home Equity Loan, sometimes called a HELOAN.
Unlike a HELOC, this isn’t a revolving line of credit. Instead, you receive a lump sum of money upfront.
Let’s say you need $75,000 to pay for a renovation.
With a traditional fixed-rate Home Equity Loan, you receive the $75,000 at closing and repay it through scheduled monthly payments.
Your interest rate is fixed, and your principal-and-interest payment generally stays the same throughout the loan term.
There’s no revolving credit line to keep borrowing from. You’re taking out one loan for a specific amount.
And just like a HELOC, a second-lien Home Equity Loan can allow you to keep your existing first mortgage in place.
Which Option Makes More Sense for You?
Here’s how I generally explain it to my clients.
A HELOC may make more sense if:
You don’t need all the money immediately.
You want flexibility to borrow as expenses come up.
You’re comfortable with a variable interest rate.
A Home Equity Loan may make more sense if:
You know exactly how much money you need.
You prefer a fixed interest rate.
You want predictable monthly payments for budgeting.
Neither one is automatically better.
Also, remember that both options create an additional debt secured by your home. Compare closing costs, fees, repayment terms, and the total cost before making a decision.
Keep Your Low Mortgage Rate and Explore Your Options
If your current mortgage has a 2% or 3% interest rate, replacing that entire loan just to access some equity may not be the most cost-effective solution.
A second mortgage could allow you to borrow against your equity while keeping your original rate.
At Andes Mortgage, we can help you compare both options based on your home value, current mortgage balance, credit, and financial situation.
Want to find out which option could work for you?
Start with Mortgage Match or schedule a consultation and let’s look at the numbers together.
Compliance Disclaimer
Andes Mortgage LLC | NMLS #2187991 | Marcos Zambrano, NMLS #988935. Equal Housing Opportunity. Information is for educational purposes only and is not a commitment to lend or a guarantee of loan approval. Loan amounts, interest rates, draw periods, repayment terms, fees, and eligibility vary by lender and program. All financing is subject to credit approval, underwriting, property eligibility, and applicable state requirements. Home equity loans and HELOCs are secured by real estate; failure to repay could result in foreclosure. Rates and terms are subject to change.
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