Home Equity Line of Credit
What is a Home Equity Line of Credit?1 (HELOC)
A HELOC is a type of home equity financing that allows you to borrow against the equity you’ve built in your home. It functions as a revolving line of credit with its own repayment schedule. The amount a homeowner may qualify for generally depends on the available equity in the property. Funds can be used for various purposes, such as paying for college tuition or consolidating debt with higher interest rates.
Popular Ways to Use a HELOC
Here are some of the most common and practical ways homeowners use their HELOC funds:
- Home Improvements - Make upgrades like kitchen remodels, bathroom renovations, or energy-efficient window installations to enhance your living space and increase home value.
- Emergency Expenses - Cover surprise costs such as HVAC repairs, medical bills, or unexpected car issues—so you're prepared when life throws a curveball.
- Debt Consolidation - Pay off high-interest credit cards or personal loans with a lower-rate HELOC and simplify your monthly payments.
- Weddings & Big Events - Help finance major milestones like weddings or family celebrations, turning meaningful moments into lasting memories.
- Business Needs - Fund startup costs, new equipment, or ongoing business expenses—ideal for entrepreneurs and small business owners.
- Pet Care - Manage unexpected veterinary bills and give your pets the care they need without financial stress.
HELOC Resources & Application
Next Steps:
- Call 844-529-3299 to speak with one of our mortgage consultants to find a mortgage option that works for you.
- Stay tuned to our Newrez articles for more information on the homebuying process and helpful mortgage tips.
Find out what you can afford.
Try our suite of calculators and tools to get a better understanding of how your finances impact your options.
Explore different types of loans.
Why Newrez?
Newrez believes the lending business shouldn't just be about home loans - it should be about homeowners. That's why our employees get to know our customer's real needs, through final closing, and beyond.
1This HELOC is an open-end line of credit where 75% of the approved full credit limit (minus the origination fees) will be drawn at the time of closing. Additional draws may be available after a 90-day period within the first 3 years not to exceed the available credit limit. Actual rates available to you may vary based on several factors including your credit score and combined loan-to-value. Loan amounts range from $50,000 to $350,000. We may determine home value and resulting equity through independent data sources and automated valuation models. Only available for eligible borrowers and property types. Not all applicants will be approved, pre-approval is based on data you have provided and certain assumptions that must be verified and subject to underwriting approval. Only available to existing Newrez serviced first lien mortgage customers on owner occupied properties. Not available in all states or territories. Contact Newrez for more information.