HOME EQUITY · VIDEO EXPLAINER
HELOC basics: understand the line of credit
Watch a short introduction to home equity lines of credit, then review how the draw period, changing payments and fees fit your borrowing plan.
About HELOC Mortgage Loans by CALVIN The Mortgage Calculator AI
Video by The Mortgage Calculator1:23
Watch on YouTubeMORTGAGERATES.NEWS READING NOTES
The ideas to carry into your comparison.
These notes add context from the publisher’s loan-program information and our learning guides.
Separate access to your equity
A home equity line can provide additional borrowing secured by your property while you keep an existing first mortgage. Available borrowing depends on the property value, current liens and the lender’s approval.
Two periods to understand
The draw period and repayment period can have different payment requirements. Ask when principal repayment begins and what the payment could become after you stop drawing funds.
Compare the complete cost
A variable-rate line can change with its benchmark. Review the margin, any introductory rate, caps, annual charges and closing costs alongside the amount you actually expect to borrow.