Borrowing, in plain English.
Short guides that answer the question you actually have, without the jargon or the ten-paragraph windup. Read what you need and get on with it.
HELOC basics
How a home equity line works, what it costs and when it beats the alternatives.
- What is a HELOC? How it works, and what happens after year 10A HELOC is a credit line secured by your home. See how the draw and repayment periods work, why payments can jump after year 10, and the pros and cons.8 min read
- How to get equity out of your home without refinancing and keep your low rateKeep your 3% mortgage and still get cash. Compare a HELOC, a home equity loan and a home equity investment, with a worked example against a 7.40% cash-out refi.8 min read
- Using a HELOC to pay off credit cards: the math at 22% vs 8%Card APRs averaged 22.15% on balances charged interest (Fed, Q2 2026). See what moving $30,000 to an 8% HELOC saves, the interest-only trap and the home risk.7 min read
- HELOC requirements and eligibility: credit score, equity, DTI and the documents you needHELOC lenders check credit (published minimums: 600 to 660), equity, DTI (often a 43% to 50% cap) and income. See real lender rules and a document checklist.8 min read
- HELOC vs home equity loan: fixed lump sum or variable line? The $50,000 mathA home equity loan pays one lump sum, usually at a fixed rate. A HELOC is a variable line you draw as needed. See the $50,000 math and when each one wins.8 min read
- HELOC draw period ending: how much your payment jumps, and 5 optionsWhen a HELOC draw period ends, you stop borrowing and start repaying. See how $400 a month becomes $502 to $728 on $60,000, and 5 options before it hits.7 min read
- Is HELOC interest tax deductible in 2026? Only if you improve the homeIn 2026, HELOC and home equity loan interest is deductible only if the money buys, builds or improves your home and you itemize. See the law and an example.8 min read
- HELOC for home improvement: is it worth it? The math on a $60,000 remodelA HELOC lets you draw remodel money as each bill comes due and pay interest only on what you use. See a $60,000 kitchen example, the tax rule and the risks.8 min read
- Is a HELOC a second mortgage? Yes, unless your home is paid offA HELOC is a second mortgage if you already have a mortgage. On a paid-off home it is the first lien. What lien position means for your rate and a refinance.7 min read
- HELOC when you're self-employed: the documents, the income math and no-doc optionsSelf-employed? HELOC lenders usually want 2 years of tax returns and count net income, not gross. See the documents, a worked example and what no-doc means.8 min read
- HELOC vs home equity investment: what $40,000 costs over 10 yearsA home equity investment has no monthly payment, but you repay a share of your home's value. Compare $40,000 from an HEI and a HELOC, plus CFPB findings.8 min read
- Can you refinance a HELOC? 5 ways to replace, lock or raise your lineYes. You can replace a HELOC with a new line, a fixed home equity loan or a cash-out refinance, lock a fixed rate or raise your limit. See the $80,000 math.8 min read
- What is a home equity loan (HELOAN)? A lump sum at a fixed rate, with a $50,000 exampleA home equity loan is a lump sum borrowed against your home, repaid at a fixed rate over 5 to 30 years. How it works, its costs and how it compares to a HELOC.9 min read
- HELOC vs personal loan: what $25,000 and $60,000 cost at 8% vs 11.86%A HELOC usually costs less than a personal loan but puts your home on the line. Compare rates, fees, speed and risk, with the math on $25,000 and $60,000.8 min read
- Can you pay off a HELOC early? Fees, closing the line and a $68,000 interest exampleYes, you can usually pay off a HELOC early. See which fees apply, why a $0 balance does not close the line, how the lien comes off and what extra payments save.8 min read
- What can you use a HELOC for? 8 common uses, the limits, and the tax ruleA HELOC can pay for almost anything, from remodels to down payments. See what lenders restrict, which uses are tax deductible, and which put your home at risk.8 min read
- How long does it take to get a HELOC? The steps, the 3-day wait and Texas's 12 daysGetting a HELOC often takes a few weeks. Two waits are set by law: 3 business days after closing before you get the money, and 12 days before closing in Texas.8 min read
- What happens to your HELOC when you sell your house: the payoff, the fees and a $450,000 sale worked outYour HELOC is paid off at closing from the sale proceeds. See how the payoff statement works, which fees apply, how the lien comes off and what if you owe more.7 min read
- HELOC vs 401(k) loan: what borrowing $30,000 costs each way, and the job-change riskA 401(k) loan caps at $50,000 and can come due if you leave your job. A HELOC puts your home on the line. Compare the rules, costs and a $30,000 example.8 min read
- HELOC vs credit card: what $15,000 costs at 22.15% vs 8%A HELOC usually costs far less than a credit card but puts your home on the line. Compare rates, minimum payments and 0% balance transfers on $15,000 of debt.8 min read
- Velocity banking: the math on paying off a $250,000 mortgage with a HELOCVelocity banking runs your pay through a HELOC to pay off a mortgage faster. We ran the math on $250,000: the HELOC rate vs your mortgage rate decides it.8 min read
- Fixed-rate HELOC: how rate locks work, what they cost and when fixed beats variableA fixed-rate HELOC locks some or all of your balance at a set rate. See lock fees, minimums and limits at 3 lenders, plus a $50,000 fixed vs variable example.7 min read
- Variable-rate HELOC: how prime plus a margin sets your rate, caps and paymentA variable-rate HELOC charges prime plus a margin. See the federal rules on rate caps, what a 0.25 or 1 point prime move does to a payment, and how to compare.6 min read
- First-lien HELOC: using a line of credit in place of your mortgageA first-lien HELOC pays off your mortgage and becomes a revolving line. See how it works, a $200,000 example against your mortgage, the risks and who it fits.7 min read
How much you can borrow
The lender math behind your limit, with or without a mortgage.
- How much equity can you borrow? The lender formula, worked outMany lenders cap all loans on your home at 80% to 85% of its value. See the CLTV formula, a worked example, how credit moves the cap, and Texas's 80% rule.8 min read
- How to borrow against a paid-off house: HELOC, loan or cash-outA paid-off home can support borrowing up to 80% of its value, $280,000 on a $350,000 home. Compare a HELOC, home equity loan and cash-out refinance, with costs.8 min read
- Home equity closing costs: $0 to $18,000 to borrow the same $60,000Taking $60,000 of equity can cost $0 to open as a HELOC or $9,000 to $18,000 as a cash-out refi. See each fee, the no-closing-cost catch and how to compare.8 min read
- HELOC without an appraisal: when an automated value is enough, and the $400,000 lineMany HELOCs use an automated valuation, not a full appraisal. When federal rules allow it, the $400,000 line, and what to do if the estimate comes in low.7 min read
- Using a HELOC to buy another house: down payment rules, DTI and a $50,000 exampleYes, you can use a HELOC for the down payment on a second home or rental. See Fannie Mae's rule on borrowed funds, how the payment hits your DTI, and the risks.8 min read
- Can you get a HELOC on a manufactured or mobile home? The real-property testMany HELOC lenders turn down manufactured homes. See the real-property test (owned land, permanent foundation, title surrendered), agency rules and options.8 min read
- HELOC on an investment or rental property: 70% CLTV caps, higher rates and an $80,000 exampleSome lenders offer a HELOC on a rental, often capped at 70% to 80% CLTV and priced higher. See the requirements, how rent counts and an $80,000 example.8 min read
- Home equity in retirement: how lenders count Social Security, pensions and IRA withdrawalsRetired? Lenders can't deny a HELOC over your age, and Social Security, pensions and IRA withdrawals can count as income. See the rules and a $40,000 example.8 min read
- Reverse mortgage vs HELOC: costs, payments and heirs, with a $60,000 exampleA reverse mortgage has no monthly payment, but the balance grows. A HELOC costs less but needs income. See both at 75 on a $400,000 home, and what heirs owe.8 min read
- HELOC on a condo: building approval, HO-6 insurance and a $65,000 exampleYou can get a HELOC on a condo, but lenders also review the building: HOA budget, insurance, repairs and assessments. See the rules and a $65,000 example.8 min read
- HELOC on a duplex, triplex or fourplex you live in: limits, rent and a $100,000 exampleYou can get a HELOC on a duplex, triplex or fourplex you live in, often on better terms than a rental. See CLTV caps, how rent counts and a $100,000 example.8 min read
- Second mortgage rates: why they run higher than first mortgages and how to compare offersSecond mortgage rates run higher than first mortgages because the second lender is paid last. See today's averages, what moves your rate and how to compare APR.6 min read
Refinancing
When a new loan pays for itself, and when keeping your rate wins.
- Cash-out refinance vs HELOC: which is better when your rate is low?Keep your low mortgage rate or replace it? Compare a cash-out refinance vs a HELOC side by side: closing costs, LTV limits and a worked example at 7.40%.7 min read
- When does refinancing make sense? Break-even math for 0.5% and 1%Refinancing makes sense when savings repay closing costs before you move. See break-even math for a 0.5% and 1% rate drop, and the term-reset trap to avoid.6 min read
- How soon can you do a cash-out refinance? 6 to 12 months, by loan typeMost cash-out refinances need 6 to 12 months of seasoning. See the Fannie Mae, Freddie Mac, FHA and VA 210-day rules, the exceptions, and a dated example.9 min read
- How does a cash-out refinance work? The 80% limit, 8 steps and a $400,000 exampleA cash-out refinance pays off your mortgage with a bigger one and hands you the difference. See the 80% to 100% limits, the 8 steps, costs and tax rules.8 min read
- Cash-out refinance on an investment property: 75% LTV, seasoning and a $120,000 exampleFannie Mae and Freddie Mac cap a rental cash-out refinance at 75% LTV (70% for 2-4 units). See seasoning, reserves, how rent counts and a $120,000 example.8 min read
- Cash-out refinance in a divorce: how to buy out your spouse and get their name off the loanA divorce buyout can count as a limited cash-out refinance, not a cash-out, if you owned the home together 12 months. See the rules and a $125,000 example.8 min read
- Refinance FHA to conventional: how to drop MIP for goodFHA mortgage insurance can last the life of the loan. See how a conventional refinance drops it, the 20% equity math, when PMI ends and the break-even at 7.32%.9 min read
- Home equity loan vs cash-out refinance: which costs less? The math on $60,000 at today's 7.32% rateA home equity loan keeps your first mortgage and its rate; a cash-out refinance replaces it. Compare rates, costs, LTV limits and a $60,000 example at 7.32%.8 min read
- No-closing-cost refinance: lender credits, rolled-in costs and the break-even mathA no-closing-cost refinance trades upfront costs for a higher rate or bigger loan. See the $300,000 math, when each option wins and how to compare credits.6 min read
Credit
What shopping does to your score, and what lenders look for.
- Does shopping for a mortgage hurt your credit? The 14- and 45-day rulesComparing mortgage lenders within 14 days counts as one credit inquiry. See how soft and hard pulls work, how many points they cost, and how long they last.6 min read
- HELOC with a 620 credit score: lender minimums, rates and limitsSome lenders approve a HELOC at 620, but many publish 640 to 660 minimums. See lender floors, how fair credit moves your rate and limit, and how to improve.8 min read
- HELOC or home equity loan with bad credit: what lenders allow at a 580 to 619 scoreMany HELOC lenders want 620 to 680, but some start at 600 if you borrow less. See CLTV caps by score, late-payment rules, and FHA cash-out options down to 500.8 min read
- Cash-out refinance with bad credit: FHA's 500 floor, 80% cap and 12-month rulesFHA allows a cash-out refinance with a score as low as 500, up to 80% of your home's value. Compare FHA, conventional and VA rules, with a $400,000 example.8 min read
- Does a HELOC hurt your credit? The 5-point inquiry, the new account and your balanceApplying for a HELOC usually costs fewer than 5 FICO points. See how the new account, your balance, late payments and closing the line affect your score.8 min read
VA cash-out
Cash-out refinance rules for veterans, and how a VA loan works with a HELOC.
- VA cash-out refinance requirements: 100% LTV, 210 days, Type I vs IIVA lets you borrow up to 100% of your home's value in a cash-out refinance. See Type I vs Type II, the 210-day rule, the 2.15% or 3.3% funding fee and credit.8 min read
- VA cash-out refinance vs HELOC: keep your low VA rate or replace it?Yes, you can get a HELOC on a home with a VA loan. Compare it to a VA cash-out refinance on a $60,000 example: funding fee, monthly payment, limits and risks.8 min read
- VA cash-out refinance in Texas: why it's barred on your homestead, and 4 options that workTexas bars a VA cash-out refinance on a homestead (AG Opinion KP-0183). See the 4 options Texas veterans still have and an $80,000 example on a $400,000 home.8 min read
- VA HELOC and VA home equity loans: what exists and what veterans can use insteadThe VA does not back HELOCs or home equity loans. See a veteran's real options: a HELOC on a VA-loan home, VA cash-out refinance, and why an IRRRL has no cash.6 min read
State guides
Home equity rules that change with where your home is.
- HELOC rules by stateBorrowing limits, waiting periods and recent home prices for each state, in plain English.33 states
-
- Alabama
- Arkansas
- California
- Colorado
- Delaware
- Florida
- Georgia
- Idaho
- Illinois
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Missouri
- Montana
- Nevada
- New Jersey
- New Mexico
- North Carolina
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- Tennessee
- Texas
- Utah
- Virginia
- Washington
- Wisconsin
- Texas cash-out refinance rules: 80% cap, 12-day wait, once a yearIn Texas, a cash-out refi on your homestead is a 50(a)(6) loan: 80% max, a 12-day wait, a 2% fee cap, one per year. See each rule and when a HELOC fits better.8 min read
Using LenderMatch
What happens after you fill out the form.
See what lenders in your state could offer you.
One short form, about 2 minutes. Free, and LenderMatch never pulls your credit.
It's free, and you're never obligated to take an offer.
Pick one to start the form.
- HELOCCash from your equity, keep your mortgage
- RefinanceBetter rate, or cash out
- VA cash-outCash out with a VA loan, for veterans
Buying a home? The purchase form opens soon.