You built your home equity. Use it.

Home equity is the portion of your home that you truly own. You can borrow against that equity when you take out a home equity loan, home equity line of credit, or cash-out refinance. To learn more and calculate the equity you’ve built, check out this article.

Home equity is the difference between your mortgage balance and your home's current market value. For example, if you owe $100,000 in mortgage loans and your home is valued at $250,000, you have $150,000 in home equity.

When you have a mortgage, you build equity over the life of the loan by:

• Making a down payment
• Paying your loan consistently
• Making additional payments towards the principal balance
• Investing in home improvements for market appreciation

For more ways to leverage your home equity to achieve your goals, read this article.

When you’re approved for a Newrez Home Equity Loan, you receive a lump sum of cash at closing, based on the value of your home’s equity. The loan has a fixed interest rate and a set term, with predictable monthly payments that cover both principal and interest (P&I).

A HELOC, or home equity line of credit, is a revolving line of credit that is secured by your home. With Newrez, you draw 75% of your approved full credit limit at closing, with the flexibility to make additional draws within your three-year draw period, up to the maximum approved amount. For an overview on HELOCs and how they work, read this article.

A Newrez HELOC has two phases. During the three-year draw period, you can borrow money from the account up to your approved limit and are only required to pay back interest on what you owe. Once the repayment period begins, you’re no longer able to withdraw funds and must pay off what you borrowed—the principal and interest. For more information on the payment structure, read this article.

Minimum Payment. Each billing statement we send you will identify a minimum monthly payment amount that you must pay. During the Advance Period or any extension thereof, your minimum monthly payment will be the amount of any accrued finance charge plus any fees and any amounts past due.

During the Repayment Period, your minimum monthly payment will be the sum of the balance you owe at the beginning of the Repayment Period divided by the number of months in the Repayment Period, plus the amount of accrued finance charges, plus any fees and any amounts past due.

If the daily periodic rate and corresponding Annual Percentage Rate change during the Repayment Period, your minimum monthly payment will be adjusted on the first payment due date after the change.

A HELOC is a revolving line of credit that allows you to withdraw funds as needed up to your approved and available limit. The interest on the line of credit is variable, which means your monthly payments may vary.

A home equity loan is similar to a traditional loan in that, Interest on home equity borrowed, is fixed which results in predictable monthly payments, offering you a lump sum amount all at once.

For an in-depth comparison, check out this article.

Both are revolving lines of credit. However, a credit card is unsecured and a HELOC is secured by your home. For a side-by-side look, read this article.

Yes, Newrez HELOCs can be refinanced. To qualify, you will need to meet lender requirements.

Yes. Both home equity loans and HELOCs are second mortgages that use your home as collateral. Your primary mortgage rate and terms remain unchanged.

_{*Processing and closing times vary depending on the nature and complexity of the transaction.}

A cash-out refinance replaces your current mortgage with a new, larger loan at the current market rate with a new term, typically 15-30 years. You receive a one-time payout for the difference between the new mortgage amount and existing balance at closing, minus closing costs. To learn more, read this article.