Will it affect my first mortgage?

Only a cash-out refinance replaces your first mortgage. A HELOC, home equity loan, or second mortgage sits behind it and leaves that rate alone.

Home Equity Loan (HELOAN)

A fixed-rate lump-sum second mortgage secured by your equity.

How it works

A home equity loan is a lump-sum second mortgage with a fixed rate (about 8-9% in 2026) and a set repayment term. Your first mortgage stays untouched, and you get predictable payments. Many lenders allow up to 85-90% CLTV for strong borrowers.

Key things to know

Combined loan-to-value usually caps near 85% (cash-out refinance at 80%).
A second lien keeps your first mortgage; a cash-out refinance replaces it.
Compare the rate type — fixed (home equity loan) vs variable (HELOC).
Budget for closing costs (often lower or waived on HELOCs).

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Frequently Asked Questions

What is the home equity loan (heloan)?: A home equity loan is a lump-sum second mortgage with a fixed rate (about 8-9% in 2026) and a set repayment term. Your first mortgage stays untouched, and you get predictable payments. Many lenders allow up to 85-90% CLTV for strong borrowers.
Will it affect my first mortgage?: Only a cash-out refinance replaces your first mortgage. A HELOC, home equity loan, or second mortgage sits behind it and leaves that rate alone.