Home Equity Loans & Lines of Credit (HELOC)

If you already own a home in California or Georgia and have built up equity, you may not need to refinance your first mortgage to access funds. Home equity loans and Home Equity Lines of Credit (HELOCs) let you tap equity while keeping your existing first loan in place.

This page explains how home equity loans and lines work, when they may make sense, and how they compare to a full refinance.

Home Equity Loan vs HELOC: What’s the Difference?

Home Equity Loan (Second Mortgage)

• Often a fixed interest rate
• Fixed monthly payment
• Lump sum at closing

Home Equity Line of Credit (HELOC)

• Revolving line you can draw from up to a set limit
• Often a variable interest rate
• Interest is typically paid only on the amount you borrow (subject to terms)

Both are secured by your home and are typically considered second liens if you already have a first mortgage in place.

When Home Equity Financing May Make Sense

Home equity loans or lines may be worth exploring if:

• Your current first mortgage rate and terms are already favorable
• You need a specific amount for projects, education, or other goals
• You want flexibility to draw funds over time (in the case of a HELOC)
• You prefer not to reset the clock on your full mortgage balance

If you’re considering consolidating larger amounts of debt or significantly changing your payment, we’ll also compare these options to cash-out refinances and debt consolidation refinances.

Common Uses in California & Georgia

Homeowners in the markets I serve often use equity financing to:

• Renovate or update homes in Oceanside and North County San Diego
• Complete projects in Riverside County and San Bernardino County
• Fund major repairs or upgrades in Metro Atlanta neighborhoods
• Build reserves or cover strategic expenses while preserving low first-mortgage rates

For bigger-picture planning, see Senior Equity Options if you’re a homeowner 55+ evaluating long-term strategies.

Home Equity vs Refinance vs HELOC

We’ll help you compare:

• Full refinance: Replace your first mortgage; may be best if your existing rate is high.
• Home equity loan: Add a fixed-rate second loan for a known amount.
• HELOC: Add a flexible line of credit you can draw from as needed.

The Refinance vs HELOC Guide is a helpful companion to this page for side-by-side comparisons.

Risk & Responsibility

Because these loans are secured by your home:

• Missing payments can put your home at risk
• It’s important to match the loan type and term to how long you’ll need the funds
• We’ll walk through payment scenarios and “what if” situations so you’re comfortable

Next Steps: Home Equity Strategy Call

If you’re considering using your home’s equity, we can:

• Estimate how much equity may be available
• Compare home equity loans, HELOCs, and full refinance options
• Show you how each choice affects payment, flexibility, and long-term interest