PRIMARY-RESIDENCE FINANCING
HELOC
Understand your equity before you draw on it.
How it works
A home equity line of credit is revolving borrowing secured by your home. Draw-period access, repayment rules, and variable-rate provisions differ by lender.
Understand the tradeoffs
Ask about the index, margin, rate caps, annual fees, minimum draws, and repayment-period payment changes. Your home is collateral and missed payments can put it at risk.
What to prepare
Current mortgage balance, property information, income documentation, and a realistic plan for drawing and repaying the line.
Your next conversation
Tell John about your planned occupancy, timeline, comfortable monthly budget, and available funds. Ask for a comparison that includes interest, fees, mortgage insurance where applicable, and ongoing property costs. No program description is an approval or a commitment to lend.