HELOC rates are variable. You'll pay the current interest rate as you make additional draws during the draw period.

Compared with a home equity loan, a HELOC is flexible, fast and easy. The initial draw with a HELOC is a percentage of the requested line amount (minus the origination fee) or 100% for lines less than $50,000. You can borrow, repay and borrow again during your specific draw period. During your initial draw period, you only need to pay interest on the amount drawn. After the initial draw period, you have a specific timeframe to repay the line of credit.

HELOC interest may be tax deductible if it meets applicable IRS requirements. For example, HELOC interest may be tax deductible if you use the money to buy, build or improve your home. You may need to itemize deductions on your tax return to claim the interest as a deduction. Additional requirements may apply. Please consult a tax advisor for more details.

With Credence Lending, you can go from quote to close in as little as 3 weeks.

Yes, you can refinance a HELOC. Options include opening another HELOC or a home equity loan to pay off the existing line of credit.

The Credence Lending HELOC has a variable interest rate based on the index rate plus a margin set by the lender.

You may need an appraisal to determine your home's value before getting a HELOC. Currently, however, Credence Lending relies primarily on automated valuation models to assess your home’s value.

A HELOC may have closing costs, including an origination fee.

The Credence Lending HELOC works by letting you borrow money when you need it. After the initial draw, you can pay back and redraw as much or as little as you need during the draw period, up to your maximum line of credit.

• HELOC vs. home equity loans. With a home equity loan, you borrow a lump sum against your home's equity and pay it back in equal installments over a set term. With a Credence Lending Home Equity Line of Credit (HELOC), you can draw as needed during an initial specific draw period (up to your maximum line of credit). After an “interest-only” period (which may be the same as or longer than the draw period, depending on the state), the loan will be fully amortized during the remaining “repayment” period of your Credence Lending HELOC.
• HELOC vs. cash-out refinancing. With a cash-out refinance, you swap your mortgage for a new home loan. You borrow more than you owed on the first mortgage and can use the cash however you like. You then end up with a new home loan, which you pay back like any other mortgage. But unlike a HELOC, you are not able to redraw in the future against a closed-end mortgage.

Credence Lending will verify your income, credit score and property value when you apply for a HELOC. You may need to meet certain income and credit requirements to qualify.

You can use the money from your HELOC however you want. Options include using the cash from a HELOC for a down payment on an investment property or second home, to pay off your mortgage or to cover the cost of home renovations.