Home / HELOC / A new HELOC should beat the one you have, after fees.
Updated September 2026
HELOC guide
A new HELOC should beat the one you have, after fees.
Refinancing a HELOC only makes sense if the new line is larger, cheaper, or about to leave its draw period. Add the payoff, the fees, and the new payment. If the first mortgage stays, this is another second lien. If you wrap both into a cash-out, you replaced the first mortgage too, which is a different product. A HELOC that is frozen or near repayment is a reason to look. A HELOC you opened last year is usually not. Bring the current note's draw-period end date.
Sending a file is not an approval and not a credit pull. We text the same business day. We do not call. If we can structure it, we name the door. If we cannot, we say so.
The screen
| Question | Why it matters |
|---|---|
| Draw period end | The payment is about to change |
| Payoff amount | The new line has to cover it |
| First mortgage | Stay, or you are doing a cash-out |
| Fees | Can wipe out a small rate win |
What we fund
- Lines about to amortize
- A higher limit for a new project
- A frozen line that no longer works
What we still need. Short list.
- The first mortgage balance, rate, and whether it can stay.
- A value we can support, and the cash you actually want.
- The property state. HELOC is only GA, FL, TN, AL, NC, and SC.
- Income path: full doc, bank statements, or rent on a DSCR HELOC.
Questions
Will the old bank subordinate?
If you are keeping them, maybe. If you are paying them off, subordination is not the issue.
Can I refinance just the HELOC and keep my 3% first?
That is the point. Say so, so we do not quote a cash-out by mistake.
Does the qualify form pay off the old line?
No. It starts a text. The payoff happens at a real closing.
Related
These are the guidelines we screen. They are not a promise that your file hits the maximum. Credit-event seasoning, occupancy, and property condition still have to be confirmed. Not a commitment to lend. We text. We do not call.