Home equity options: HELOCs, home equity loans and cash-out

Your options

HELOC (home equity line of credit). A line of credit secured by your home. You draw what you need during a draw period, then repay. Your first mortgage stays in place. Payments can change if the rate is variable.

Home equity loan. A one-time lump sum with a set repayment schedule, also as a second mortgage. Good when you know exactly how much you need.

Cash-out refinance. Replaces your current mortgage with a larger one and pays you the difference. Can make sense if you also want to change your rate or term.

Non-QM home equity. For self-employed borrowers or investors who don't fit traditional guidelines, home equity products using bank statements or other documentation may be available through some wholesale lenders, subject to guidelines.

Common uses

• Home renovations and repairs
• Consolidating higher-interest debt
• Education costs
• A down payment on another property
• Business or investment needs

How to choose

Ask yourself: Do I want to keep my current first mortgage? Do I need money all at once or over time? Am I comfortable with a payment that could change? A broker can lay out the options side by side.

Risks to keep in mind

Home equity loans are secured by your home. Borrow only what you can repay. Closing costs and fees may apply, and variable-rate products can rise.

What you'll need

ID, income documents or bank statements, your mortgage statement, homeowners insurance and an appraisal or valuation. Requirements vary by lender.

How Turn Times helps

Turn Times is a licensed mortgage broker, not a lender. Instead of offering one company's products, we compare home equity options from wholesale lenders and walk you through the differences in plain language. Here's how it usually goes:

1. Tell us your goal. A short conversation about the property, your timeline and what matters most to you.
2. We search pricing across wholesale lenders. We look at which wholesale lenders' guidelines may fit your situation, and a licensed loan officer compares their pricing and terms.
3. You choose. We lay out the trade-offs so you can pick the option that works for you.
4. We manage the loan to closing. Appraisal, title, conditions and updates along the way.

Every loan is subject to the lender's underwriting, and approval isn't guaranteed. We arrange loans for properties in California and Colorado.

Frequently asked questions