HELOC · Home Equity Line of Credit
Tap Your Equity Without Touching Your Low First-Mortgage Rate
A HELOC gives you a revolving line against your home’s equity — take your initial draw now, pay interest only on your balance during the draw period, and keep the low rate on your existing mortgage. It’s the most flexible, lowest-starting-payment way to fund debt payoff, a car, a renovation, a pool, or solar. We shop 20+ wholesale lenders to get you the highest line at the lowest rate.
Up to 90%Combined loan-to-value
Up to $750KLine amount
Interest-only3-5 yr draw period
Keep yourLow 1st-mortgage rate
Why a HELOC Is the Best Fit for Most Homeowners
If you have a low first-mortgage rate and a need that is flexible or spread over time, a HELOC almost always beats refinancing or a lump-sum loan. Here is why our clients choose it.
Keep Your Low First Rate
Refinancing to pull cash reprices your entire balance at today’s rate. A HELOC sits behind your existing mortgage and leaves that low rate completely untouched. This is the single biggest reason a HELOC wins right now.
No reset of your 1st mortgageLines From $50K to $750K
Borrow as little as $50,000 or as much as $750,000 against your equity, up to 90% combined loan-to-value on a primary residence. During the draw period you pay interest only on your outstanding balance, so the payment tracks what you owe, not the full line.
Up to 90% CLTVReusable, Revolving Access
Pay it down and the credit becomes available again, like a card secured by your home at a fraction of card rates. Perfect for phased renovations, tuition semesters, or an on-call emergency backstop.
Borrow, repay, borrow againLowest Starting Payment
Because the draw period is interest-only, a HELOC has the lowest monthly payment of the three equity options on the same borrowed amount. That keeps your cash flow light while you put the money to work.
Lighter cash flowNo Full Refinance Hassle
No restarting your 30-year clock, no paying closing costs on your entire loan balance. HELOC closing costs are low, and many of our lender options come with little or no cost to open the line.
Low or no closing costsInterest May Be Deductible
When the funds are used to buy, build, or substantially improve the home securing the line, the interest may be tax-deductible under current IRS rules. Ask your CPA — renovations and pools often qualify.
Possible tax advantageWhat Homeowners Fund With a HELOC
One flexible line, dozens of uses. These are three of the most common — each a case where a HELOC beats high-interest debt or a costly refinance.
HELOC Calculator: HELOC vs Home Equity Loan vs Cash-Out, Side by Side
Enter your numbers. We’ll show your available credit line and the monthly cost of the same borrowed amount under all three products — so you can see, in your own figures, why a HELOC is usually the lightest and most flexible option.
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Your maximum available line $—
Minimum initial draw at closing (75% of your line)$—
Best fit
HELOC
$—
interest-only /mo during draw
Home Equity Loan
$—
fixed principal & interest /mo
Cash-Out Refi
$—
P&I /mo on the cash-out portion
Estimates for education only — not a Loan Estimate or a commitment to lend. Program parameters: lines $50,000–$750,000, combined loan-to-value up to 90% on a primary residence (lower on second homes and investment properties), a 3–5 year interest-only draw period, up to a 25-year amortizing repayment, and an initial draw of at least 75% of your line at closing. A HELOC and a home equity loan sit behind your existing first mortgage and leave its rate untouched; a cash-out refinance replaces your first mortgage entirely, which reprices your whole balance at today’s rate. The cash-out figure shown is the payment on the new money only, so the real cost of a refinance is usually higher than it looks here. Actual rates and lines depend on credit, CLTV, occupancy, and program. Call (877) 870-0007 for exact numbers.
HELOC vs Home Equity Loan vs Cash-Out Refinance
Three ways to turn equity into money. They are not interchangeable — the right pick depends on your first-mortgage rate, how predictable your need is, and how you want to repay. For most homeowners with a low existing rate, the HELOC wins.
HELOC
Rate: variable (Prime-based) · revolving line
- Revolving line — redraw as you repay principal
- Interest-only during the draw period
- Keeps your low first-mortgage rate
- Reusable — pay down and re-borrow
- Low or no closing costs
- Variable rate can move with Prime
Best for: keeping a low 1st rate, flexible or phased needs, revolving redraw access, debt payoff, cars, renovations, pools, solar.
Home Equity Loan
Rate: fixed · lump-sum 2nd mortgage
- Fixed rate and fixed payment
- Keeps your low first-mortgage rate
- One lump sum up front
- Predictable payoff date
- Pay interest on the full amount day one
- No re-borrowing once repaid
Best for: a single, known, one-time expense when you want rate certainty and a fixed payoff schedule. See the home equity loan page →
Cash-Out Refinance
Rate: fixed (30 yr) · replaces your mortgage
- One single monthly payment
- Highest borrowing ceiling
- Fixed rate for the full term
- Reprices your entire balance at today’s rate
- Restarts your amortization clock
- Closing costs on the whole loan
Best for: large lump-sum needs when your current rate is at or above today’s rates, so resetting the whole loan costs you nothing. See the cash-out page →
How a HELOC Actually Works
A HELOC has two phases. Understanding them is the difference between using it as a smart financial tool and being surprised by a payment change later. We walk you through both before you sign.
Phase 1
The Interest-Only Draw Period (3-5 years)
You take an initial draw of at least 75% of your line at closing, and your line stays open for the rest. During this window you pay interest only on your outstanding balance — the lightest possible payment. Pay principal down and the credit becomes available again (subsequent draws start at $1,000, or $4,000 in Texas).
Phase 2
The Amortizing Repayment Period (up to 25 years)
The draw window closes and the outstanding balance converts to a fully amortizing principal-and-interest payment over the remaining term — typically 25 years after a 5-year draw. We plan for this transition up front so the payment change is never a surprise.
Real program parameters we can place today: lines from $50,000 to $750,000, combined loan-to-value up to 90% on a primary residence, a variable rate tied to Prime, and an initial draw of at least 75% of your line at closing. Second homes and investment properties are eligible at lower CLTV caps.
From Application to Open Line in 5 Steps
1
Discovery Call
We review your equity, rate, and goal in one call. No credit pull to start.
15 min2
Shop 20+ Lenders
We compare lines, rates, and draw terms across our wholesale network.
24 hrs3
Application
Quick digital application and document upload once you like an option.
Same day4
Appraisal & Underwriting
Value confirmed and file cleared. Many HELOCs use fast desktop valuations.
1-3 wks5
Close & Draw
Sign, wait out the rescission period, and your line is live to draw.
Line openReal Numbers: Where the HELOC Wins
Illustrative scenarios using round numbers. Your figures will differ — run yours in the calculator above or call for exact pricing.
Debt Consolidation
Erase $40,000 in Card Debt
Four cards at ~23% APR were costing roughly $767/mo in interest alone. A HELOC draw at 8.5% covers them.
Card interest (before)~$767/mo
HELOC interest on $40K~$283/mo
First-mortgage rateUntouched
Interest saved / year
~$5,800
Auto
Buy a $35,000 Car
Skip 9% dealer financing. Draw $35,000 from the line, pay cash for the car, and repay the HELOC on your own schedule.
Dealer loan rate~9.0%
HELOC rate~8.5%
Reusable revolving lineYes
Interest-only start
~$248/mo
Home Improvement
Fund a $75,000 Remodel
Kitchen, pool, or solar billed in stages. Draw as each invoice lands instead of borrowing $75K on day one.
Line approved$120,000
Drawn so far$75,000
Interest may be deductiblePossibly
Interest-only start
~$531/mo
Rated 5.0★ by Real OnPoint Clients
Verified Google reviews from the homeowners we’ve guided across California and eight more states. The same broker who runs your HELOC numbers shops 20+ wholesale lenders and gets you to the closing table.
Victor Santos, NMLS #888844 — Your Wholesale Broker
Senior Loan Officer at OnPoint Mortgage Pro, headquartered in Irvine, California, and licensed in 9 states. When you call, you talk to me — not a call center. I’ll tell you honestly whether a HELOC, a home equity loan, or a cash-out refi is the right tool for your situation.
- 20+ wholesale lenders competing for your line
- Direct broker access, no retail markup
- Same-day quote turnaround
- Free equity analysis, no credit impact to start
HELOC FAQ
The questions we hear most. If yours isn’t here, call (877) 870-0007 — we’ll answer it in the discovery call.
What is the difference between a HELOC and a home equity loan?
Both are second mortgages that sit behind your existing first mortgage, so both keep your low first rate. The difference is structure: a HELOC is a revolving, variable-rate line you draw from as needed and repay interest-only during the draw period; a home equity loan (HELOAN) is a fixed-rate lump sum with a fixed payment from day one. Choose a HELOC for flexibility and the lowest starting payment; choose a HELOAN for a single known expense with rate certainty.
How much can I borrow with a HELOC?
Our HELOC programs run from $50,000 up to a $750,000 line, and let your first mortgage plus the HELOC reach up to 90% of your home’s value on a primary residence (your combined loan-to-value, or CLTV). Second homes and investment properties cap lower, around 70-80%. Example: on a $900,000 home with a $450,000 first mortgage at 90% CLTV, your available line is up to $360,000. Use the calculator above to see your number, then we shop lenders to find the highest line at the best rate.
Why is a HELOC better than a cash-out refinance right now?
If your first mortgage carries a low rate, a cash-out refinance throws that rate away — it replaces your whole loan at today’s higher rate, so you pay more on money you already borrowed. A HELOC leaves your first mortgage and its low rate completely untouched and only charges interest on the new amount you draw. For most homeowners who bought or refinanced when rates were low, that makes the HELOC dramatically cheaper.
Is the HELOC rate fixed or variable?
HELOC rates are typically variable, tied to the Prime Rate plus a margin, so they move when the Fed moves. Some lenders offer a fixed-rate lock option on part of your balance. We compare both and explain how the rate can move before you commit — and we plan for the repayment period so there are no surprises.
Is there a minimum initial draw?
Yes. Our HELOC programs require an initial draw of at least 75% of your approved line at closing, so we size your line to match what you actually need. After that, the remaining portion revolves: draw it, repay it, and draw again (subsequent draws start at $1,000, or $4,000 in Texas). You pay interest only on your outstanding balance during the draw period.
What is the draw period and repayment period?
On our HELOC programs the draw period is a 3-to-5-year interest-only window when you can borrow and pay interest only on your balance. After it ends, the repayment period (up to 25 years) begins: no more draws, and your balance converts to a fully amortizing principal-and-interest payment. We map this out with you in advance so the transition is planned, not a shock.
Can I use a HELOC to pay off credit cards or a car loan?
Yes, and it is one of the most common uses. Rolling 20-25% credit card balances or a high-rate auto loan into a HELOC at single-digit rates can save thousands per year in interest. You draw the funds and pay the balances off directly, then the line revolves as you repay.
Is HELOC interest tax-deductible?
Under current IRS rules, HELOC interest may be deductible when the funds are used to buy, build, or substantially improve the home that secures the line — think renovations, a pool, or solar. Interest on funds used for other purposes (paying off cards, buying a car) generally is not deductible. Confirm your situation with a CPA.
What are the closing costs on a HELOC?
HELOC closing costs are far lower than a full refinance because you are not re-originating your entire mortgage. Many of our wholesale lender options come with little or no cost to open the line. We show you the all-in cost of each option side by side so you can compare apples to apples.
How long does it take to get a HELOC?
Typically 2-4 weeks from application to an open line, depending on the lender and how quickly the valuation clears. Many HELOCs use fast desktop or automated valuations rather than a full appraisal, which speeds things up. We give you a real timeline in the discovery call.
Can I get a HELOC if I’m self-employed?
Yes. If your tax returns show enough income, standard programs work. If you write off aggressively, we have Non-QM and bank-statement HELOC options that qualify you on business deposits instead of tax returns — often far more borrowing power than a bank would offer.
Do you offer HELOCs outside California?
Yes. OnPoint Mortgage Pro is licensed in California, Colorado, Florida, Idaho, Maryland, New Hampshire, South Carolina, Texas, and Virginia. Available lines, CLTV limits, and rates vary slightly by state and lender, and we shop all of them for you.
See Your HELOC Line and Rate in 24 Hours
Free equity analysis. No credit impact to start. We’ll shop your file across 20+ wholesale lenders and show you the HELOC, home equity loan, and cash-out options side by side — then tell you honestly which one fits.
(877) 870-0007
OnPoint Mortgage Pro · NMLS #2134550 · Victor Santos NMLS #888844 · Equal Housing Opportunity