Refinancing
What is the difference between a HELOC and a home equity loan?
Context
Homeowners tapping equity have three structurally different products to choose from.
The short answer
A home equity loan gives you a lump sum at a fixed rate with fixed payments; a HELOC is a revolving line you draw from as needed, usually at a variable rate. A cash-out refinance replaces your whole mortgage instead.
Things to keep in mind
Which fits depends on how much you need, when, and your current rate. DMF does not place HELOCs or home equity loans.
Next step
If a cash-out refinance is the right structure, contact DMF; if you need a HELOC or home equity loan, we can refer you to a lender that offers them.
Have a question about your own situation?
DMF serves Minnesota homebuyers and homeowners. We submit your purchase or refinance file to multiple wholesale lenders and compare what each one offers, so your pricing is not limited to one lender's rate sheet.
Davis Monroe Financial, LLC is a mortgage broker, not a lender. We do not make credit decisions or fund loans. Rate locks are issued by the lender; we submit and manage lock requests on your behalf. All loans are subject to credit approval. Rates and terms are subject to change without notice.