Line of credit or cash-out refinance
A home equity line of credit works like a revolving line: you draw what you need during a 10-year draw period and repay over 20 years. A cash-out refinance replaces your existing mortgage with a larger one and pays you the difference at closing.
Which is better depends on your current rate. If your existing mortgage is well below today’s rates, a line of credit usually preserves more value.
- Intro APR7.95% for 12 months
- Variable APR after intro8.50%–12.75%
- Draw period10 years
- Repayment period20 years
- Annual fee$0
- Early closure fee$450 within 36 months
What you will need
We verify income, occupancy and property value. An automated valuation covers most properties; a full appraisal is ordered when the automated estimate is not conclusive.
- Two most recent pay stubs and last year’s W-2 or tax return
- Current mortgage statement and homeowners insurance declaration
- Property tax statement
- Photo identification for every borrower on title
Important disclosures
Rates as of September 8, 2026 and subject to change. The APR is variable and tied to the Prime Rate; your rate depends on credit history, combined loan-to-value, lien position, occupancy and property type. Property insurance is required and flood insurance may be required. Consult a tax advisor about the deductibility of interest. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.
