A HELOC is a revolving credit line secured by your home equity. You draw what you need, when you need it, and pay interest only on the balance. For Utah homeowners holding a low first-mortgage rate, a HELOC is usually the cheapest way to access equity without refinancing that rate away.
Why borrowers choose this program
- Keep your existing low first-mortgage rate untouched
- Draw funds as needed instead of taking a lump sum
- Pay interest only on what you actually use
- Ideal for renovations, tuition, or a safety line of credit
HELOC vs. cash-out refinance
If your current mortgage rate is below today’s market, a cash-out refinance replaces cheap debt with expensive debt on your entire balance — usually a bad trade. A HELOC adds a second, smaller loan instead. If your current rate is at or above market, cash-out refinancing may win by consolidating everything at a better rate. We run both scenarios with real numbers on every equity consultation.
How much can you borrow?
Most HELOC lenders allow combined borrowing (first mortgage plus HELOC) up to 80–90% of your home’s value. With the equity Utah homeowners have built over the past decade, six-figure lines are common. Draw periods typically run 10 years with interest-only minimums, followed by a repayment period.