Unlock YourHome Equity
Access the equity you've built in your California home with a flexible line of credit. Draw funds when you need them for renovations, education, or any major expense.
What is a Home Equity Line of Credit?
A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your home's equity—the difference between your home's value and what you owe on your mortgage. It works similarly to a credit card: you have a maximum credit limit and can borrow, repay, and borrow again.
California homeowners often use HELOCs because of the significant equity built up due to property appreciation. With home values rising substantially in many California markets, you may have more accessible equity than you realize.
Unlike a cash-out refinance that replaces your entire mortgage, a HELOC is a separate loan—a second lien on your property. This allows you to keep your existing mortgage rate while accessing equity, which is particularly valuable if you have a low rate on your first mortgage.
HELOC Quick Facts
- Borrow up to 80-85% of home value minus mortgage
- Only pay interest on amount you draw
- 10-year draw period typical
- Revolving credit—repay and reuse
- Variable rates tied to prime rate
- Keep your existing first mortgage
HELOC Benefits
A HELOC offers unique advantages for accessing your home equity flexibly.
Flexible Access
Draw funds as you need them, not all at once. Only pay interest on what you use, and repay and redraw during the draw period.
Lower Rates Than Cards
HELOC rates are typically much lower than credit cards or personal loans because your home serves as collateral.
Keep Your Mortgage
A HELOC is a second lien—you keep your existing first mortgage and its rate intact while accessing equity.
Revolving Credit
Like a credit card, as you pay down your balance, that credit becomes available again during the draw period.
Potential Tax Benefits
Interest may be tax-deductible when used for home improvements. Consult your tax advisor for your specific situation.
Long Draw Period
Most HELOCs offer a 10-year draw period to access funds, followed by a repayment period to pay off the balance.
Common HELOC Uses
Your HELOC funds can be used for virtually any purpose. Here are the most common uses.
Home Renovations
Fund kitchen remodels, bathroom upgrades, room additions, or other home improvements that can increase your property value.
Debt Consolidation
Pay off high-interest credit cards, personal loans, or other debts at a lower interest rate, simplifying your payments.
Education Expenses
Cover college tuition, graduate school, or other educational costs at rates potentially lower than student loans.
Emergency Fund
Have a financial safety net available for unexpected expenses without touching retirement or other savings.
Investment Opportunities
Access capital for investment properties, business opportunities, or other investments (consult your financial advisor).
Major Purchases
Finance large purchases like vehicles, weddings, or medical expenses at potentially lower rates than other financing options.
HELOC vs. Home Equity Loan
Both let you access home equity, but they work differently. Choose based on your needs.
HELOC
- Revolving credit line
- Draw funds as needed
- Variable interest rate (usually)
- Interest-only payments during draw period
- Only pay interest on what you use
- Flexible for ongoing needs
Best for: Ongoing expenses, projects with variable costs, or emergency fund access
Home Equity Loan
- Lump sum disbursement
- One-time funding
- Fixed interest rate
- Fixed monthly payments
- Pay interest on full amount
- Better for one-time expenses
Best for: One-time large expenses with a fixed amount needed
How to Get a HELOC
Equity Assessment
We evaluate your home's current value and existing mortgage balance to determine how much equity you can access.
Application
Submit your HELOC application with income verification and property information. We guide you through the process.
Appraisal & Approval
Your home is appraised to confirm value. Once approved, your credit line is established based on your equity.
Access Your Funds
Once your HELOC is open, access funds via checks, transfers, or a card whenever you need them during the draw period.
HELOC FAQs
Find Out How Much Equity You Can Access
Get a free equity assessment and see how a HELOC could work for your financial goals.