Keep your first mortgage
A separate HELOC may preserve your existing mortgage's rate and terms.
Put a plan behind your home equity. Explore a home equity line of credit for renovations, planned expenses, or debt consolidation while keeping your existing first mortgage.
A home equity line of credit, or HELOC, is a revolving credit line secured by your home. During its draw period, you can borrow, repay, and borrow again up to your available limit, subject to the agreement.
Unlike a cash-out refinance, a separate HELOC generally does not replace your existing first mortgage. It adds its own balance, rate, payment, and costs.
Our Houzd Mortgage team can help you compare the benefits, costs, and repayment responsibilities.
A separate HELOC may preserve your existing mortgage's rate and terms.
Access available credit during the draw period. Minimum draws or an initial advance may apply.
Interest generally applies to your outstanding balance. Other charges may still apply.
Discuss borrowing in stages as project expenses arise, subject to continued credit availability.
Compare total repayment costs and the risk of moving unsecured debt onto your home.
Review a HELOC alongside a home equity loan or cash-out refinance before choosing.
A HELOC typically has a draw period followed by a repayment period. The length of each phase and the payment rules depend on the plan.
Review the full agreement, including rate adjustments, fees, and any balloon payment. Future access to unused credit is not guaranteed.
Yes. Payments may change with the interest rate, amount borrowed, or repayment phase.
Some plans allow interest-only payments during the draw period. Those payments do not reduce principal, and payments can increase substantially when principal repayment begins.
Ask how the payment would change at a higher rate and when the draw period ends.
Include your first mortgage, HELOC, taxes, insurance, and other obligations when deciding what you can comfortably repay.
Based in Draper, our Houzd Mortgage team helps homeowners evaluate financing in Salt Lake, Utah, Davis, and Weber counties. Whether you are planning a remodel in Salt Lake City or comparing borrowing options elsewhere along the Wasatch Front, start with your home's value, mortgage balance, and goals.
Your home's location alone does not determine how much you can borrow. Property eligibility, existing liens, credit, income, and lender guidelines all affect the available options.
Connect with a Houzd loan officer to discuss your Utah property and the amount you want to access.
Requirements vary by lender and program. Your review may include:
Ask which documents and property valuation are required for the program you are considering.
Work through the purpose, numbers, and terms before borrowing.
Discuss how much you need, when you need it, and how you plan to repay it.
Provide requested income, mortgage, credit, and property information.
Review limits, rates, fees, draw rules, and future payment requirements.
Finish underwriting and closing. Funding follows applicable waiting periods and program requirements.
Your limit depends on the lender's accepted property value, existing liens, credit, income, and maximum combined loan-to-value allowance. Having equity does not mean all of it is available to borrow.
Yes. A separate HELOC can generally be added without replacing your first mortgage. You remain responsible for both obligations, and the HELOC has its own terms.
No. A HELOC allows repeated borrowing during its draw period, subject to available credit. A home equity loan provides a lump sum. Compare each product's rate structure, payment schedule, and fees.
There is no single minimum across all programs. The lender evaluates your credit alongside equity, income, debts, and other eligibility requirements.
Most HELOCs have variable rates, so interest costs and payments can change. Some plans offer fixed-rate features for eligible balances. Ask about availability and costs.
A property valuation is required, but the method varies. Depending on the program and property, the lender may accept an automated valuation or require an appraisal. An appraisal waiver is not guaranteed.
These are common borrowing purposes, subject to the plan's terms. For debt consolidation, compare fees and total repayment costs. Moving unsecured debt to a HELOC makes your home collateral for it.
New borrowing typically ends, and the remaining balance must be repaid under your agreement. Payments may increase, and some plans require a balloon payment.
Yes, in permitted circumstances, including certain significant declines in property value or changes affecting repayment ability. Do not assume unused credit will always remain accessible.
It depends on your existing mortgage, borrowing amount, fees, and repayment goals. A HELOC generally adds a separate obligation; a cash-out refinance replaces your mortgage with a new, larger loan. Compare total costs and payments for both.
Talk with a Houzd loan officer about your property, mortgage balance, and goals, or start your application online.
The Consumer Financial Protection Bureau's HELOC guide explains credit lines, payment changes, fees, and questions to ask when comparing offers.
Let's review your borrowing goals and available HELOC options so you can make an informed decision.
Considering a home purchase, too? Explore home financing.
Houzd Mortgage | NMLS #888979 | Equal Housing Opportunity.
All credit is subject to underwriting and property approval. Availability, credit limits, rates, fees, valuation methods, and terms vary by lender and program and may change. Minimum draws and other conditions may apply. This information is not a commitment to lend.
HELOC rates are generally variable, and payments may increase. Your home secures the credit line. Failure to make required payments may result in foreclosure. Review all plan disclosures before borrowing.