Erase Your Credit Card Debt Without Losing Your Low Mortgage Rate

A home equity line of credit, or HELOC, allows you to borrow against the equity you’ve built in your home. Unlike a traditional loan, it works more like a credit line, giving you flexibility to use funds when you need them. HELOCs are secured by your home and subject to credit and underwriting approval.

A HELOC is a revolving line of credit secured by your home. You can borrow as needed up to your approved limit during the draw period, then repay over time. Payments may be interest-only during the draw period, followed by principal and interest during repayment. Terms vary based on the program and your qualifications.

Many HELOCs offer interest-only payment options during the draw period, which can help keep initial payments lower. After that period ends, payments typically include both principal and interest. Payment structure depends on the program and loan terms.

Most HELOCs have variable rates that can change over time based on market conditions. Some programs may offer fixed-rate options on portions of the balance. Rates, APR, and payment terms will vary based on credit profile, property, and current market conditions.

HELOC rates are variable, so your payment may increase if rates rise and decrease if rates fall. Some programs may offer fixed-rate options. Even with rate changes, HELOC rates are often lower than many credit cards. Rates shown here are estimates for illustrative purposes only and are not an offer of credit. Actual APR, terms, and payments will vary based on credit, property, and market conditions.

A HELOC can be used to restructure existing debt, often at a lower rate, which may help more of your payment go toward reducing your balance instead of interest. Actual APR, terms, and payments will vary based on credit, property, and market conditions.

A HELOC is secured by your home, which means failure to repay could result in foreclosure. We'll walk you through the numbers so you can decide what fits your situation. For some homeowners, a HELOC may be a way to manage higher-interest debt, depending on their goals and financial situation.

Credit requirements vary by program, but stronger credit profiles typically receive better terms and higher approval amounts. Other factors like income, existing debt, and available equity also play a role. Qualification is subject to credit and underwriting approval.

Lending standards today are generally stricter, with income verification, equity requirements, and updated guidelines. A HELOC is still a loan secured by your home, so it's important to make sure it fits your financial situation.

The process starts with a quick application and a review of your credit, income, and available home equity. If approved, you’ll receive a credit line based on your qualifications and property value. From there, you can access funds as needed. Approval, terms, and available credit line are subject to underwriting guidelines.