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home equity line of credit
A home equity line of credit, also called a HELOC, allows homeowners to borrow against available home equity while keeping their current first mortgage in place.
Andes Mortgage can help you compare HELOC options, estimate payments, and decide whether a line of credit or fixed Home Equity Loan makes more sense for your goals.
Compare HELOC, Home Equity Loan, and refinance options with guidance from Andes Mortgage.
We offer variable and fixed rate HELOCs
HELOCs available for up to 90% CLTV
Flexible: Use your line of credit whenever you need it.
Competitive Rates
Use for debt payoff, renovations or major expenses
Tap into the equity you’ve built without changing your existing mortgage or giving up your current low rate.
Borrow what you need, when you need it. You only pay interest on what you use during the draw period.
From home improvement and debt consolidation to education or unexpected expenses.
We offer different draw periods anywhere between 3 to 10 years and up to 30 years to repay.
A HELOC is a secured loan using your home as collateral. Rates are typically variable and payments can change.
SEE PAYMENT EXAMPLES
calculate your payment
This calculator is for estimates only. Actual payments may vary.
HELOC rates are tied to the Prime Rate and can change monthly. Rates shown here reflect market averages.
Prime Rate (As of today)
Rates are subject to change. Get your personalized rate for accurate numbers based on your situation.
EQUITY ACCESS OPTIONS COMPARED
A HELOC is not the only way to access home equity. Depending on your goals, a fixed Home Equity Loan or cash-out refinance may be a better fit. The right option depends on whether you want flexible access to funds, a fixed monthly payment, or one larger lump sum at closing.
|
Option
|
Best For
|
Rate Type
|
Payment Structure
|
Keeps Current Mortgage
|
Access Funds As Needed
|
|---|---|---|---|---|---|
|
HELOC
(Home Equity Line of Credit)
|
Flexibility, revolving line, on going expenses
|
Variable
|
Interest-only during draw period
|
✅ Yes
|
✅ Yes
|
|
HELOAN (Home Equity Loan)
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One time expenses, fixed rate & payments
|
Fixed
|
Fixed principal & interest payments
|
✅ Yes
|
❌ No
|
|
Cash-Out Refinance
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Large expenses, debt consolidation
|
Fixed or Variable
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Principal & interest payments
|
❌ No
|
❌ No
|
|
Requirement
|
Primary Home
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Investment Home
|
|---|---|---|
|
Credit scores
|
640+
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680 Minimum
|
|
Loan-to-Value
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Up to 90%
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Up to 75%
|
|
Debt-to-income
|
50%
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None
|
|
Cash Reserves
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||
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Income Verification
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Qualifications and rates can vary based on the lender, credit score, home equity, loan amount and property type. The examples below are for illustration purposes only and are not a commitment to lend.
A home equity line of credit is a revolving line of credit that allows homeowners to borrow against available home equity. Instead of refinancing your entire mortgage, a HELOC is usually added as a separate loan secured by your home, which may allow you to keep your current first mortgage in place.
There are three important things to understand about HELOCs:
The Draw Period
During the draw period, you may be able to borrow funds as needed up to your approved credit limit. Your minimum monthly payment during the draw period is interest-only.
At Andes Mortgage, we offer draw periods ranging from 3 years and up to 10 years. After the draw period ends, the loan typically enters a repayment period where the remaining balance is paid back over time.
The Repayment Period
Once the draw period ends, your line of credit enters its repayment period. This is is the period of time that you have to pay off the line of credit in full. We offer repayment periods from 15 years and up to 30 years. During the repayment period, the payment converts to a fully amortized principal and interest payment.
Variable Rates
Rates for home equity lines of credits are variable based on the prime rate and the lender’s margin. Depending on the Federal Reserve’s rate policy, the prime rate may change and this will affect the payment of your HELOC. Although we offer fixed-rate HELOCs, those rates are typically higher than regular HELOCs.
Confused because you don’t know if you should get a HELOC from a bank, credit union or mortgage broker? This video breaks down the places you need to consider for a HELOC.
Our DSCR HELOC has become one of our hottest HELOC programs designed for real estate investors. No need for income documentation to qualify. We qualify you based on the DSCR of the property.
Looking for a HELOC instead?
We compare rates from 40+ lenders to find competitive options that fit your needs. You’ll get expert guidance, personalized solutions, and a partner who works for you.
We compare rates from 40+ lenders to find competitive options that fit your needs. You’ll get expert guidance, personalized solutions, and a partner who works for you.
Compare interest rates for home equity lines of credit.
Qualify using your bank statements for income.
Home Equity Line of Credit for investment properties.
Calculate your house payment with a cash out refinance.
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home’s equity. Similar to a credit card, you can borrow funds as needed up to your approved credit limit during the draw period and repay the balance over time.
HELOC rates are typically based on the Prime Rate plus a lender margin. Factors such as your credit score, loan-to-value ratio (LTV), occupancy, loan amount, and overall financial profile can impact the rate you receive.
Most HELOCs have variable interest rates that can change over time as market conditions and the Prime Rate change.
At Andes Mortgage, we offer both variable and fixed-rate HELOC options.
At Andes Mortgage, we offer HELOCs with credit scores as 640. However, higher credit scores are preferred as you will receive better rates, terms and more equity access.
The amount you can borrow depends on your home’s value, current mortgage balance, available equity, and lender guidelines.
We at Andes Mortgage, we access HELOCs for up to 90% combined loan-to-value (CLTV).
No. A HELOC is a separate loan that is typically recorded as a second mortgage behind your existing first mortgage. Obtaining a HELOC does not change the interest rate, payment, or terms of your current mortgage.
Both a HELOC and a Home Equity Loan allow you to borrow against your home’s equity, but they work differently.
A HELOC functions like a revolving line of credit. You can draw funds as needed during the draw period and only pay interest on the amount you use. Most HELOCs have variable interest rates.
A Home Equity Loan (HELOAN) provides a lump sum of money upfront and typically comes with a fixed interest rate and fixed monthly payment.
HELOC funds can be used for a variety of purposes, including home renovations, debt consolidation, education expenses, emergency reserves, business investments, and other major expenses.
A HELOC is a separate line of credit that leaves your existing mortgage intact. A cash-out refinance replaces your current mortgage with a new loan and provides cash from your home’s equity at closing.
Home equity is the difference between your current home’s value and it’s current liens. The more equity you have, the bigger the line of credit you can generally take.
Yes. During the draw period, many HELOCs offer interest-only payment options. Once the repayment period begins, borrowers typically make principal and interest payments on the outstanding balance.
HELOC funds can be used for a variety of purposes, including home renovations, debt consolidation, education expenses, emergency reserves, business investments, and other major expenses.
No! You can pay off the balance of your HELOC in full and you will never be penalized or be charged any fees.
Absolutely! Homeowners who take out a HELOC often pay off high interest revolving debt, personal loans and even auto loans and student loans if the numbers make sense.
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Book a call and get personalized information.
Skip the wait and get started on your pre-approval asap.