HELOCs for California Homeowners
Tap your home equity while keeping your current mortgage. Compare it side by side with a reverse mortgage line of credit.
What is a HELOC?
A HELOC is a revolving line of credit secured by your home, and you keep your first mortgage in place. During the draw period, you borrow only what you need, when you need it. You make monthly payments on the amount you use. Rates are usually variable, so your payment can change over time.
Common uses
Home improvements
Repairs, upgrades or changes that help you stay in your home comfortably.
Paying off higher-interest debt
Consolidate balances that carry higher interest than a home equity line.
Emergency reserve
Keep a line of credit available for the unexpected, and draw only if you need it.
Major expenses
Cover large costs such as medical bills, education or helping family.
HELOC vs. reverse mortgage line of credit
| HELOC | Reverse mortgage (HECM) line of credit | |
|---|---|---|
| Age requirement | None | 62 or older |
| Monthly payments | Yes, on the balance you use | No monthly mortgage payment required, but you still pay property taxes, homeowners insurance and upkeep |
| Qualifying | Based on income and credit | Based mainly on age, home value and rates |
| Line growth | No | The unused HECM line can grow over time |
| Counseling | None | Independent HUD-approved counseling is required |
Which is right depends on your goals. We'll compare both for you, no pressure.
Learn more about reverse mortgage options.
How it works
- 1
Quick call
A short call with one of our loan officers to understand your goals.
- 2
Application and appraisal
We help you complete the application and order the home appraisal.
- 3
Approval and closing
Once your file is reviewed and approved, you sign your closing documents.
- 4
Draw funds as needed
Use the line during the draw period, only when you need it.