A HELOC lets you borrow against the equity in your home as you need it, giving you a revolving credit line for expenses like renovations, education, or debt consolidation. With flexible terms and interest-only payment options, we’ll help you unlock the value in your home with a plan that fits your goals.
A HELOC, or Home Equity Line of Credit, is a revolving credit line that lets you borrow against the equity you’ve built in your home. It works much like a credit card, giving you access to funds up to a certain limit that you can draw from as needed.
Once approved, you can borrow money during a draw period, usually ten years. You only pay interest on the amount you use. After the draw period ends, the repayment period begins, where you’ll repay the principal and interest on what you’ve borrowed.
A HELOC is incredibly versatile. Homeowners often use it for home renovations, education costs, medical expenses, or to consolidate high-interest debt. Because it’s secured by your home, rates are typically lower than credit cards or personal loans.
Your credit limit depends on the equity in your home, your credit score, and your income. Lenders typically allow you to borrow up to 85 percent of your home’s value minus the balance of your current mortgage.
Flexibility is the key advantage. You only borrow what you need and repay on your terms. The interest may be tax deductible when used for home improvements, and it can provide financial breathing room for planned or unexpected costs.
A HELOC is a revolving credit line, while a home equity loan gives you a lump sum upfront. If you want ongoing access to funds over time instead of one-time financing, a HELOC offers more flexibility and control.
At LUMI Funding Group, we make tapping into your home equity simple and strategic. Whether you need a small cushion for emergencies or a large line for renovations, we help you choose the right structure for your goals. Our team walks you through the process clearly, compares options, and helps you understand how to manage your draw period and repayment plan. With competitive rates and honest guidance, we make sure your HELOC supports your bigger financial picture.
From how to qualify to how funds are used, these FAQs cover the most common questions about HELOCs and how they can support your financial goals.
Lenders typically look for a credit score of 620 or higher, but better scores often qualify for larger credit limits and lower interest rates.
Yes. A HELOC is a second lien on your property. As long as you have enough equity and meet the lender’s requirements, you can qualify even with an active mortgage.
Most HELOCs have variable interest rates that change with market conditions. However, some lenders offer fixed-rate options for part or all of your balance.
The typical term is 20 to 30 years. The first 10 years are usually the draw period, followed by a 10 to 20 year repayment phase.
Yes. Many homeowners use HELOCs to consolidate high-interest debt into a lower-rate loan, helping them reduce monthly payments and pay off debt faster.
No. As long as you’re within your draw period and credit limit, you can access available funds without reapplying. The line of credit works like a reusable account.
A Home Equity Line of Credit gives you ongoing access to the value locked in your home. It’s a smart way to handle large or recurring expenses without refinancing or taking on high-interest debt. HELOCs offer flexible repayment, competitive rates, and the freedom to borrow what you need when you need it. If you have built up home equity and want a reliable way to manage expenses or investments, a HELOC could be the right fit for your strategy.
