Understanding Your Home Equity Options
Three powerful ways to access your home's equity. Here's a plain-English breakdown of how each works, so you can choose with confidence.
HELOC
Home Equity Line of Credit
Think of a HELOC like a credit card secured by your home. You're approved for a maximum credit limit, and you borrow only what you need, when you need it. During the "draw period," you can borrow, repay, and re-borrow freely.
How it works
Best for
Ongoing projects, emergency funds, or anyone who wants flexible access to cash without taking a lump sum.
Did you know? Fixed-Rate HELOC Options
Many HELOCs offer a fixed-rate conversion — you can lock all or part of your balance into a fixed rate with full principal & interest payments, just like a traditional loan.
- Lock in a fixed rate on draws you've already taken
- Pay principal + interest on the locked portion
- Keep the variable-rate line open for future draws
- Best of both worlds: flexibility + payment certainty
Home Equity Loan
Also called a HELOAN or second mortgage
A Home Equity Loan gives you a single lump-sum payment with a fixed interest rate and predictable monthly payments. Your existing mortgage stays untouched — this is a separate, standalone loan.
How it works
Best for
Large one-time expenses like home renovations, debt consolidation, or major purchases where you know exactly how much you need.
Cash-Out Refinance
Replace your existing mortgage with a new, larger one
A cash-out refinance pays off your current mortgage and replaces it with a new, bigger loan — you keep the difference in cash. Because it is a first mortgage, it typically offers the lowest rate of the three options, but you are resetting your entire loan term.
How it works
Best for
Homeowners who can also lower their current rate — if today's rates beat what you have, you save on your whole mortgage while pulling cash out at the same time.
HELOC vs. Home Equity Loan vs. Cash-Out Refinance
Why use a broker instead of going to your bank?
A single bank can only offer its own products. As a broker working with Shield Home Loans, we shop across multiple wholesale lenders to find the right fit for your situation.
More Options
Access to wholesale products from multiple lenders — not just one bank's menu.
Better Rates
Wholesale pricing is often lower than what retail banks offer directly to consumers.
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