MD
Mark DankmanResource Home Loan
Loan Program

HELOC & Equity Access

A HELOC is a variable-rate revolving line secured by your home. Fixed second mortgages give a lump sum at a fixed rate. Both preserve your existing first mortgage, which usually matters most when your first is locked below 5%.

Max CLTV

85-90%

Line size

$25K - $500K+

Draw period

5-10 years typical

Credit minimum

660

Best For
  • Homeowners with a low first-mortgage rate
  • Renovation, tuition, or investment cash needs
  • Bridge financing before a sale
How It Works
  • Combined loan-to-value (first + HELOC) drives max line size
  • Draw period followed by amortizing repayment period
  • Interest-only payments available during draw period on most lines
  • Fixed-rate advance options on some lenders
Pros
  • Preserves low first-mortgage rate
  • Only pay interest on drawn balance
  • Reusable line during draw period
Trade-offs
  • Variable rate
  • Rate resets can be volatile
Frequently Asked

Should I do a HELOC or a cash-out refinance?

If your current first is below 5%, almost always HELOC or fixed second. Above 6.5%, a cash-out refi may make sense. We model both against your actual timeline before recommending.

How fast can a HELOC close?

Many lines close in two to three weeks because they use an automated valuation rather than a full appraisal.

Real-World Examples

How this program actually plays out.

Renovation without losing a 2.875% first

A homeowner needing $150,000 for an addition, with a first mortgage locked in at 2.875%.

Home value
$1,250,000
First mortgage balance
$620,000
HELOC line
$150,000
Combined LTV
62%

A cash-out refinance would have repriced the entire balance. The HELOC kept the cheap first mortgage intact and cost a fraction in interest over the project.

Examples are illustrative composites of typical files, not offers of credit or guarantees of terms. Your actual options depend on your credit, income, property, and current market pricing.

What Moves Your Rate
  • Combined loan-to-value tier
  • Credit score
  • Line size and whether you take an initial draw
  • Occupancy: primary, second home, or investment
Documents You Will Need
  • Recent mortgage statement for the existing first
  • Income documentation, though some lenders offer streamlined verification
  • Homeowners insurance declaration page
  • Property value support, often an automated valuation instead of a full appraisal
Northern California Notes

How heloc & equity access work in our market.

  • Bay Area homeowners with sub-4% first mortgages are the core case, since refinancing the first would be costly.
  • Sonoma and Napa homeowners frequently use lines for fire hardening, ADUs, and property improvements.
San FranciscoMarin CountyEast BaySonoma CountyNapa CountySacramento
Is this the right program?

Have Mark run your numbers, no credit pull required.

Talk to Mark
Other Programs
Conventional LoansFHA LoansVA LoansUSDA Rural LoansJumbo LoansDSCR Investor LoansBank Statement LoansAsset Depletion LoansITIN LoansRenovation LoansFix & Flip / Bridge LoansReverse Mortgages (HECM)