Loan Programs · Home equity

Tap your equity, keep your first mortgage

If you like the terms on your current mortgage, you may not want to refinance it. A HELOC lets you borrow against your equity as a separate line of credit. You draw what you need, when you need it.

HELOC (Home Equity Line of Credit) explained

A home equity line of credit (HELOC) is a second mortgage that works like a credit line secured by your home. During the draw period you can borrow, repay and borrow again up to your limit, and payments are often interest-only. After the draw period, the repayment period begins and you pay down principal and interest. Most HELOCs have variable rates tied to an index, so payments can change. Your available line depends on your home's value, your current mortgage balance and your credit, and is subject to credit approval and program guidelines.

Who it fits

  • Owners with favorable terms on their first mortgage who want to keep it
  • Owners planning a renovation paid in stages
  • Owners who want a financial cushion for hurricane repairs or other surprises
  • Owners consolidating higher-cost debt with a clear payoff plan
  • Buyers using equity in one home toward another purchase

Florida specifics

  • A HELOC can fund roof replacement, impact windows and other wind mitigation, which may also reduce insurance premiums.
  • Florida documentary stamp and intangible taxes apply to the HELOC at closing, generally based on the line amount.
  • Florida's homestead protections apply to forced sale by most creditors, but they do not prevent a lender from foreclosing on a mortgage or HELOC you sign.
  • Some lenders limit HELOCs on condos, second homes or investment properties.

How it works with Justin

  1. We estimate your available equity based on value, current balance and credit.
  2. You apply, and the lender orders a valuation of your home.
  3. Once approved, you close and the line becomes available after any rescission period.
  4. You draw funds as needed during the draw period and repay during the repayment period.

Documents to gather

  • Current first mortgage statement
  • Income documentation
  • Homeowners insurance declarations page
  • Photo ID
  • HOA contact information if applicable

Things to consider

  • Variable rates mean your payment can rise.
  • When the draw period ends, payments can increase significantly as principal repayment begins.
  • Your home secures the line, so missed payments put it at risk.
  • Lenders can freeze or reduce a line if your home's value drops or your finances change.

Share a few details and Justin will tell you whether HELOC fits, with real numbers for your loan.

HELOC (Home Equity Line of Credit): common questions

How is a HELOC different from a cash-out refinance?

A HELOC is a separate second mortgage, so your first mortgage stays as it is. A cash-out refinance replaces your first mortgage with a larger one. If your current terms are favorable, a HELOC often makes more sense.

How much can I borrow with a HELOC?

It depends on your home's value, your current mortgage balance, your credit and the lender's combined loan-to-value limits. We can estimate it after a short review.

Can I get a HELOC on a condo in Florida?

Some lenders offer HELOCs on condos, though rules are often stricter than for single-family homes. The building's insurance and finances may also be reviewed.

Are HELOC rates fixed or variable?

Most HELOCs have variable rates tied to an index, so payments can change. Some lenders let you lock part of the balance at a fixed rate.

Can I use a HELOC to buy another home?

Yes. Some owners use a HELOC on their current home for a down payment on the next one. The new lender will count the HELOC payment in your debt-to-income ratio.

Related loan programs

  • Cash-Out Refinance — Turn South Florida home equity into cash with a cash-out refinance. Compare it with a HELOC, see Florida closing costs and plan for the long term.
  • Bridge Loans — Bridge loans for South Florida buyers who want to buy before they sell: use equity in your current home, make a stronger offer and avoid moving twice.
  • Renovation Loans — Buy or refinance a South Florida home and finance the repairs in one loan: FHA 203(k), Fannie Mae HomeStyle and Freddie Mac CHOICERenovation.
  • Mortgage Refinance — Refinance your Florida mortgage to change your term, drop mortgage insurance or move off an adjustable rate. Honest break-even math, no pressure.

South Florida areas where it fits

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