30-yr fixed6.75%+0.0315-yr fixed6.05%+0.00FHA 30-yr6.55%+0.08VA 30-yr6.38%+0.08Jumbo 30-yr6.82%+0.11Updated September 1, 2026
lowest.mortgageCompare today's mortgage ratesYour rate

Loan type

Home equity loans and HELOCs

A home equity loan is a lump sum second mortgage at a fixed rate. A HELOC is a revolving line of credit against your equity, usually at a variable rate. Both leave your first mortgage untouched.

Estimate a fixed home equity payment

Who this is for

  • Homeowners with a low first-mortgage rate they want to keep
  • Owners with at least 15% to 20% equity after the new loan
  • Borrowers with a defined need: renovation, debt consolidation, tuition

How it works, step by step

  1. Work out your combined loan-to-value: first mortgage plus the new loan, divided by home value. Most lenders cap it at 80% to 90%.
  2. Fixed home equity loan for a known amount; HELOC for ongoing or uncertain spending.
  3. HELOCs usually have a 10-year draw period then a 20-year repayment period. Payments jump when the draw ends.
  4. Credit unions and banks often beat online lenders on second mortgages.

Pros

  • Keeps your existing low first-mortgage rate
  • Lower closing costs than a cash-out refinance
  • Interest may be deductible when used to improve the home

Cons

  • Rates are higher than first mortgages
  • Variable HELOC rates move with the prime rate
  • Your home is the collateral