Home Equity Line of Credit (HELOC)
Access your home equity with a flexible line of credit—borrow only what you need, when you need it.
HELOC Benefits
Flexible Access to Funds
Draw funds as needed, not all upfront. Use only what you need, when you need it, and only pay interest on what you borrow.
Revolving Credit Line
As you repay, your available credit replenishes. Borrow again during the draw period without a new application.
Interest-Only Payment Options
Many HELOCs allow interest-only payments during the draw period (typically 5–10 years), giving you lower payments and more flexibility early on.
Potentially Tax-Deductible Interest
If used for home improvements, interest may be tax-deductible (consult your tax advisor).
Higher Borrowing Limits
Borrow up to 85% of your home’s value (minus what you owe), making HELOCs ideal for large expenses.
Lower Interest Rates
HELOCs are secured by your home, so rates are often lower than credit cards or personal loans.
HELOC Eligibility Requirements
Home Equity
Typically need 15–20% equity. Most lenders allow borrowing up to 80–85% of your home’s value, minus your remaining mortgage.
Credit Score
Minimum 620–660 for most lenders. Higher scores mean better rates and terms.
Debt-to-Income Ratio
DTI should be 43% or lower, including all debt and the max potential HELOC payment.
Income Verification
Stable, reliable income required. Most lenders want two years of income/employment history.
Property Type
Most HELOCs are for primary residences. Second homes/investments may qualify with stricter requirements.
Payment History
Lenders prefer no late mortgage payments in the last 12–24 months. Responsible credit history is key.
HELOC Application Process
Initial Application
Apply online and tell us about your property, needs, and goals.
Documentation Submission
Submit income docs, tax returns, mortgage statements, and info on debts/assets.
Home Appraisal
We order an appraisal to confirm your property’s market value.
Underwriting
Our team reviews your credit, income, DTI, and property to finalize your loan terms.
Closing
Sign final documents and get access to your HELOC funds.
HELOC vs. Home Equity Loan
| Feature | HELOC | Home Equity Loan |
|---|---|---|
| Fund Distribution | Draw as needed during draw period | One-time lump sum |
| Interest Rate | Variable rate (typically) | Fixed rate |
| Monthly Payment | Variable during draw period | Fixed monthly payments |
| Term Structure | Draw period (5–10 years) + repayment period (10–20 years) | Fixed term (5–30 years) |
| Best For | Ongoing or uncertain expenses | One-time large expenses |
| Interest Accrual | Only on amount drawn | On full loan amount |
| Closing Costs | Often lower | Typically higher |
HELOC Ideal For:
- Phased or ongoing home projects
- Paying only for what you use
- Flexible, revolving credit needs
- Variable interest rate is acceptable
- Emergency or unpredictable expenses
Home Equity Loan Ideal For:
- One-time, large expenses
- Predictable, fixed monthly payments
- Fixed interest rates preferred
- Debt consolidation
- Budget-conscious borrowers
What Our Clients Say
Richard & Susan K.
Portland, Oregon
Michael J.
Chicago, Illinois
Jennifer L.
Austin, Texas
Frequently Asked Questions
What is a HELOC and how does it work?
A HELOC is a revolving credit line secured by your home equity. You borrow what you need, repay, and can borrow again during the draw period. You pay interest only on your outstanding balance, not your entire limit.
How much can I borrow with a HELOC?
Usually up to 80–85% of your home’s appraised value minus your existing mortgage balance. Example: if your home is $400,000 and you owe $250,000, you might qualify for a $70,000 HELOC at 80% LTV.
What’s the difference between a HELOC’s draw period and repayment period?
During the draw period (typically 5–10 years), you can borrow and often make interest-only payments. Repayment period (10–20 years): can’t borrow more, must repay principal + interest.
Are HELOC interest rates fixed or variable?
Most HELOCs have variable rates that change with market conditions. Some lenders let you lock in a fixed rate on portions of your balance for stability.
What can I use a HELOC for?
Home improvements, debt consolidation, education, emergencies, major purchases—whatever you need, but using it for value-building projects is often best.
Are there any fees with a HELOC?
Application, origination, annual fees, possible early closure fee, plus third-party costs like appraisal or title search. Some lenders waive certain fees in exchange for a higher rate.
Is HELOC interest tax-deductible?
Interest is generally deductible only if you use HELOC funds for home improvements. Consult your tax advisor for your specific case.
E Mortgage Capital, Inc. is a full-service mortgage company that offers extensive options for residential mortgages, with quick service and leading rates
E Mortgage Capital. Inc.
NMLS#: 1396861
915 Highland Pointe Dr, Roseville, CA 95678, USA
3401 Mallory Ln, Franklin, TN 37067, USA
18071 Fitch, Irvine, CA 92614, USA
Notice To Texas Loan Applicants: Consumers wishing to file a complaint against a mortgage banker, or a licensed mortgage banker residential mortgage loan originator, should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, TX 78705. Complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov.
A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed mortgage banker residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at