Home Equity Loans & Lines of Credit

When should you consider a Home Equity Loan?

Home Equity Loans, also known as 2nd mortgages, allow homeowners to borrow funds using their home equity as collateral. These are one-time, fixed-rate loans where the borrower receives the full loan amount upfront as a lump sum. Borrowers can qualify for a home equity loan even if there is an existing mortgage on the property.

A Home Equity Loan can be a great option if:

• You need the full loan amount upfront
• You value stability 
• You prefer a fixed-rate and knowing that your payment will never change

When should you consider a HELOC?

Home Equity Lines of Credit (HELOC) are similar to Home Equity Loans, but instead of a lump sum the funds are accessed, with a credit card or checking account, through a revolving line of credit. Another difference to keep in mind is that the interest rate for a HELOC is adjustable. Typically, HELOCs have a draw period, during which you can withdraw money, and a repayment period, during which you must payback the balance. At Cal Coast our HELOCs have a 10-year draw period, with interest-only payments, and a 15-year repayment period.¹

A HELOC can be a great option if:

• You don't need the entire loan amount upfront
• You need to access funds directly with a credit card
• You want the flexibility to draw money when you need it and pay interest only on the amount borrowed

Review your options with a Mortgage Loan Officer.

Answer a few questions and a home loan expert will reach out to help you.