HELOC and Home Equity Line of Credit Options

A home equity line of credit (HELOC) is a revolving credit line secured by your home. It may let an eligible homeowner borrow and repay amounts up to an approved limit during the available draw period. Because the home secures the line, it is important to understand how payments, rate changes, and repayment terms work before you apply.

NorthStar Funding reviews HELOC and home-equity options for homeowners who want to access available equity while keeping their broader mortgage goals in view. Availability, lien position, property type, combined loan-to-value, credit, income, reserves, draw requirements, rates, and repayment terms vary by lender and file.

Request a home equity review or contact NorthStar Funding.

How a HELOC works

Unlike a lump-sum home equity loan, a HELOC is generally a revolving line of credit. Borrowers may be able to draw, repay, and redraw within the terms of the line. HELOC rates are often variable, so both the rate and monthly payment may change over time.

HELOC or home equity loan?

A HELOC can offer flexibility when future borrowing needs are uncertain. A home equity loan generally provides a single lump sum, often with a fixed repayment structure. The right option depends on the purpose of the funds, repayment horizon, existing mortgage, and risk tolerance.

Second-mortgage considerations

• A HELOC may be a second lien when you already have a first mortgage.
• Both the first mortgage and the HELOC payment must be considered in the household budget.
• Because your home is collateral, missed payments can put the property at risk.
• Some situations may call for a refinance or another financing approach instead.

HELOC FAQs

Can I keep my existing first mortgage?

In many situations, a HELOC may be structured behind an existing first mortgage. Lien position and eligibility depend on the lender, property, existing loan, and full underwriting review.

What can home equity funds be used for?

Eligible uses vary. Homeowners often explore equity financing for home improvements, major expenses, debt consolidation, or planned liquidity needs. A loan professional can help assess whether a HELOC fits the purpose and repayment plan.

Will my payment change?

Many HELOCs have variable rates. Your payment can change as the outstanding balance, rate, or repayment phase changes. Review the lender’s disclosure package carefully before closing.

What information should I prepare?

Start with your property address, current first-mortgage details, estimate of the funds needed, income and asset documentation, and intended use of the funds.

Start an application · Explore refinance options · Contact NorthStar Funding · Call (800) 917-1595

This page is for general information and is not a commitment to lend. All loans are subject to credit, property, underwriting, and applicable legal requirements.

For general consumer information about HELOCs, see the Consumer Financial Protection Bureau’s HELOC overview.