Home equity guide

Understand the value.
Consider the commitment.

A home equity line of credit lets eligible homeowners borrow against available equity. Your home secures the debt, so missed payments can put it at risk.

Know the two phases

A draw period permits borrowing under the agreement. A repayment period follows. Payments can change between these phases, and variable rates can change the cost.

What to gather

• Estimated property value and current mortgage balance.
• Income documentation and existing debt obligations.
• Property, tax and insurance records.

What to ask the lender

Ask about APR, rate adjustments, repayment periods, closing costs, annual fees, minimum draws and early closure fees. Consider whether a fixed-rate alternative would better suit your repayment plan.