Past clients with substantial equity sometimes call asking about pulling cash out. There are three instruments. Each works differently. Here is the reference.
Once your buyer has been in their home for a few years, equity builds. They start asking: can I tap it for the renovation? The college tuition? The investment property?
Home equity loans and HELOCs answer that question. Different shapes for different uses: fixed lump sum, or a credit line drawn over time.
If your past client asks, send them to the studio. We run the comparison and tell them which one fits their use case.
Past clients with significant equity sometimes ask about pulling cash out. There are three structures. Each works differently. Each makes sense in different situations.
| Factor | Equity Loan | HELOC | Cash-Out Refi |
|---|---|---|---|
| Amount needed | Known, lump sum | Variable, drawn over time | Large, often combined with rate change |
| Rate type | Fixed | Variable (tied to Prime) | Fixed |
| First mortgage | Untouched | Untouched | Replaced |
| Closing costs | Moderate ($1k-$3k typical) | Often minimal or zero | Highest (full refi closing costs) |
| Typical rate (vs first) | +0.5% to +2% | +1% to +3% (variable) | +0.25% to +0.5% |
| Best use case | Renovation with known budget | Ongoing projects, emergency fund | Large debt consolidation, rate refi combined |
The full side-by-side comparison with scenarios is on the equity vs HELOC page.
Working with the studio means working with Geoffrey. Phone goes to a phone. Email goes to an inbox that gets read. The file is worked by the same loan officer from application to closing.
