What Are My Options for Home Equity Loans?

Mortgage and Lending with FHA, VA, Jumbo, Downpayment Assistance, Conv. NMLS #276329

There are three popular types of home equity loans for you to choose from:

Home Equity Loan

This is essentially a second mortgage.

  • Once the loan closes, you get paid one lump sum.
  • You pay it back with monthly installments, with interest.

Home Equity Line of Credit (HELOC)

This option is a revolving credit line, operating like a credit card, with the limit being determined by your home equity.

  • There is a draw period in which you withdraw funds from the lender up to the amount you’re approved for.
  • This is followed by a repayment period, where you make monthly payments with interest.

 Cash-Out Refinance

This method involves refinancing your mortgage. Your new mortgage will include the original amount you borrowed plus the new amount you’ll receive in cash, hence the name.

  • This results in one new mortgage payment, encompassing both your original mortgage amount and the new cash you borrowed.


Posted by

Follow Me


Lisa Perry, Senior Loan Officer

"Your Northern VA Mortgage Specialist"


NMLS ID #86548 / 276329

Email:  LPerry@fhmtg.com

Apply on line:  LisaPerrryLoans.com






 Proudly Serving Washington DC, Virginia & Maryland

Comments (1)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Lisa, with so many homeowners doing remodeling versus moving, this is a great post.

Oct 21, 2021 04:24 PM
Lisa Perry - NMLS # 276329

Hi Joan,

Yes, it is a great option.  Now all we need to do is have the supplies delivered on time.

Oct 31, 2021 10:26 AM