What Is a HELOC or Home Equity Loan?
A HELOC is a revolving line of credit secured by your home. It works a lot like a credit card: you borrow what you need, pay it back, and borrow again during the draw period. Interest is typically charged only on what you use.
A home equity loan works differently. You receive a lump sum upfront and repay it in fixed monthly installments over a set term. Interest rates are usually fixed, which makes budgeting predictable.
Both options are second mortgages, meaning they are separate from your primary home loan. Lender Express is a mortgage broker, which means we shop lenders on your behalf to find the most competitive terms available for your situation.
Key Benefits
- Access equity you have already built without selling your home
- Rates are typically lower than credit cards or personal loans
- Interest may be tax-deductible when used for home improvements (consult a tax advisor)
- HELOCs offer flexibility: borrow only what you need, when you need it
- Home equity loans provide a fixed rate and predictable monthly payment
- Can be used for renovations, debt consolidation, education, or large expenses
- We compare multiple lenders to find the right product and terms for you
How It Works
- You apply and we assess how much equity you have in your home.
- We shop our lender network to find the best available options for your credit profile and goals.
- You choose between a HELOC or a home equity loan based on your needs.
- For a HELOC: you receive a credit line you can draw from during the draw period, typically 5 to 10 years.
- For a home equity loan: you receive a lump sum and begin repaying it in fixed monthly installments.
- Use the funds for your purpose and manage repayment according to your loan terms.
Use our mortgage calculator to estimate how much equity you may be able to access and what your payments could look like. Link: https://lenderexpress.com/mortgage-calculator/
Who This Loan Is Best For
- Homeowners with significant equity who want to fund renovations or improvements
- Borrowers looking to consolidate high-interest debt into a lower-rate option
- People covering major life expenses such as education, medical costs, or a business investment
- Those who want a flexible credit line and are comfortable with a variable rate (HELOC)
- Borrowers who prefer a fixed monthly payment and a defined payoff timeline (home equity loan)
- Homeowners who do not want to refinance their existing mortgage or lose their current rate
Basic Requirements
Exact requirements vary by lender and your situation. General guidelines include:
- Sufficient equity in your home — most lenders allow you to borrow up to 80 to 90 percent of your home value minus what you owe
- Credit score of 620 or higher, though stronger scores qualify for better rates
- Documented income to support repayment
- Stable employment history
- Primary or secondary residence (investment properties may have different rules)
Because Lender Express works with multiple lenders, we can often find options even when your profile does not fit the mold of a single bank.