Home Equity
Home Equity Line of Credit (HELOC)
Access your home equity through Breezeful's lender marketplace. Compare HELOC options with a single application.
A home equity line of credit is a revolving credit line that uses your home as collateral. A HELOC works similarly to a credit card — you draw funds as needed and make minimum monthly payments on what you've borrowed.
Homeowners with equity in their property can use a HELOC for home renovations, debt consolidation, tuition, medical expenses, or other major costs. The flexibility of a HELOC is that it's there when you need it.
Breezeful's platform lets you compare HELOC options from multiple lenders through one application, so you can find the option that fits your situation.
Advantages vs. Disadvantages
Advantages
The main advantage is the flexibility:
- Unlike a refinance, you don't need to replace your existing loan — no prepayment penalties.
- Draw funds as you need them, pay interest only on what you use.
Disadvantages
The main disadvantages are the variable rate and qualification bar:
- Typically variable-rate: monthly payments may increase if the prime rate rises.
- Stricter qualification requirements than some loan types.
- Additional fees (appraisal, title, legal).
- Penalties for missed payments.
Because the HELOC amount is based on your home's appraised value, you'll typically need a home appraisal. Other fees may include title search and insurance, and legal or closing fees.
Refinance vs. HELOC
Both options let you tap into your home equity, but they work differently. A cash-out refinance replaces your existing loan entirely, while a HELOC is a separate credit line you draw from as needed. Learn more about refinancing on Breezeful.
Cash-out refinance
- Replaces your current loan with a new, larger one.
- Interest on the full amount starts immediately.
- Often a lower rate, but may include closing costs and fees.
Home equity line of credit
- Typically variable rate tied to the prime rate.
- Draw funds as needed over the draw period.
- Your existing loan stays in place — no need to replace it.
Eligibility
Typical HELOC Requirements
Lenders generally look for:
- At least 15-20% equity in your home.
- Good credit: generally 620 minimum, though 700+ helps secure better terms.
- Proof of income: W-2s, pay stubs, tax returns.
- Manageable debt-to-income ratio (typically under 43%).
Breezeful's marketplace matches your profile with lenders whose requirements align with your situation — so you see options relevant to you.
HELOC Calculator
To estimate how much you could access: take 80% of your home's value (the max combined loan-to-value) and subtract your remaining loan balance. It's also important that the HELOC portion does not exceed 65% of the home's value.
For example, if your home is appraised at $350,000, the max LTV would be $280,000. Subtract a $175,000 loan balance to get $105,000. Dividing by the home value: $105,000 / $350,000 = 30%, which is under the 65% threshold.
HELOC CALCULATOR
Max LTV Amount
$280,000.00
HELOC Amount
$105,000.00
Home Value Ratio
30.00%
Under the 65% limit
This is an estimate — your actual eligibility depends on your full financial profile. Learn more about Breezeful or apply below to compare HELOC options from our lender network.
Looking for a purchase pre-approval instead? Start here.