Access Home Equity Without Refinancing Your Mortgage
Want to access your home equity without giving up your low mortgage rate? A HELOC, home equity loan, or home equity investment (HEI) may allow you to keep your existing mortgage while accessing cash. Compare the payments, costs, and trade-offs of each option before deciding which to explore.
Compare Your Options at a Glance
| Feature |  HELOC |  Home equity loan |  HEI |
|---|---|---|---|
| Cash access | Credit line | Lump sum | Lump sum |
| Monthly payments | Yes, when funds are borrowed | Yes | None |
| Main cost | Interest + fees | Interest + fees | Settlement amount + fees |
| Key trade-off | Payments can change | Another monthly loan payment | A potentially substantial payment later |
| Keep your first mortgage? | Yes | Yes | Generally yes |
- HELOC
- Cash access
- Credit line
- Monthly payments
- Yes, when funds are borrowed
- Main cost
- Interest + fees
- Key trade-off
- Payments can change
- Keep your first mortgage?
- Yes
- Home equity loan
- Cash access
- Lump sum
- Monthly payments
- Yes
- Main cost
- Interest + fees
- Key trade-off
- Another monthly loan payment
- Keep your first mortgage?
- Yes
- HEI
- Cash access
- Lump sum
- Monthly payments
- None
- Main cost
- Settlement amount + fees
- Key trade-off
- A potentially substantial payment later
- Keep your first mortgage?
- Generally yes
Product terms vary. Keeping your first mortgage does not eliminate the costs or risks of accessing additional equity. An HEI still requires settlement, even without regular monthly payments.
Understand the Three Options
HELOC
A Credit Line Secured by Your Home
A HELOC generally lets you draw funds as needed while keeping your existing mortgage. Payments depend on your balance, rate, and loan terms. Compare fees, initial draw requirements, and how payments may change when the draw period ends.
Home Equity Loan
A Lump Sum With Scheduled Payments
A home equity loan provides a lump sum alongside your existing mortgage. Fixed-rate options offer predictable principal-and-interest payments. Compare the rate, fees, repayment term, and whether the additional payment fits your budget.
Home Equity Investment (HEI)
Upfront Cash With Settlement Later
A home equity investment generally provides cash without regular monthly payments to the provider. Instead, you owe a future settlement amount based on the contract’s formula. Compare fees, settlement terms, and how you would pay that obligation.
How to Choose an Equity-Access Option
Start with what you need the money to do, and how you plan to repay it.
- Cash access: Do you need a lump sum or funds you can draw over time?
- Monthly budget: Can you comfortably manage another payment?
- Predictability: How important is knowing what you’ll pay each month?
- Timeline: How long do you expect to keep the financing arrangement?
- Exit plan: How would you repay or settle it if your circumstances changed?
Keeping your mortgage rate is only part of the decision. Compare the additional costs and obligations, not just the initial payment.
Compare HELOC and HEI Scenarios
Explore illustrative HELOC payments and HEI settlement scenarios using your own inputs.
Results are educational estimates—not an approval, lender offer, or provider-specific settlement quote.
Explore Your Next Step
Choose a resource based on the question you want to answer next.
- How much might I be able to borrow? Use the HELOC borrowing calculator.
- What could my monthly payment look like? Use the HELOC payment calculator.
- What are the benefits and drawbacks of an HEI? Explore home equity investment pros and cons.
- What should I ask an HEI provider? Review questions to ask before choosing an HEI.
Provider availability, property eligibility, and terms vary. Confirm whether a provider serves the state where your property is located. The absence of regular monthly HEI payments does not eliminate the future settlement obligation.
Advertiser disclosure: EquitySquirrel may earn a commission when you open an agreement through the links below. Compensation never affects our ratings, rankings, or recommendations.
Featured Partners · No Monthly Payments
- Qualify in minutes. No credit impact.
- Close in as little as 3 weeks1
- Access up to $600,000
- MaturityMatch™ term alignment
- Keep your low-rate mortgage
- Access up to $500,000
1 “Close in as little as 3 weeks” reflects the average timeline under standard conditions. Actual timelines vary based on documentation, title, property location, and local recording or notarization requirements. Timing is not guaranteed.
Terms and conditions apply. Not all homeowners will qualify. Not available in all states. NMLS #1993600, www.nmlsconsumeraccess.org. See nada.co for complete details.
Resources for Arizona Homeowners
If your property is in Arizona, explore our local guides:
- Compare Arizona HELOC lenders.
- Explore Arizona home equity loans.
- Compare Arizona HEI companies.
- Understand Arizona HELOC qualification requirements.
Frequently Asked Questions
Yes. A HELOC or home equity loan can provide access to equity without replacing your first mortgage. An HEI may also offer upfront cash through a separate agreement. Eligibility and terms vary by provider.
No, not when it is added alongside your first mortgage. Your existing mortgage retains its terms, while the HELOC or home equity loan has its own rate, fees, and repayment obligations.
Not necessarily. Compare the combined cost of your existing mortgage and additional financing with the cost of replacing your mortgage. Rates, fees, repayment terms, and how long you expect to keep the financing all matter, not just the headline rate.
An HEI generally does not require regular monthly payments to the provider, but you must settle the agreement later. The settlement amount depends on the contract and can be substantial. You still need to maintain existing mortgage payments and meet property-related obligations.
Yes. Keeping your first mortgage does not eliminate the risks of additional financing. Failure to meet HELOC or home equity loan obligations can lead to foreclosure. An HEI can also put your home at risk if you cannot meet its terms or fund the required settlement.
Browse all home equity guides.
EquitySquirrel, operated by Scout Media LLC, is led by Aleksandra Kadzielawski, Lic #SA694336000, a Licensed Arizona Realtor and former Editorial Director. EquitySquirrel is an educational resource. All loan products are subject to credit approval, terms, and equity verification. This content does not constitute financial, legal, or lending advice. Consult a licensed professional before making decisions about your home equity.