08/31/2026
I get asked this constantly, so here's the short version.
If you're thinking about using your home's equity, you've probably run into three terms that sound interchangeable and aren't: HELOC, HELOAN, and cash-out refinance. This video covers the first two.
A HELOC is a line of credit. You draw from it as you need it, which makes it the right tool when you don't know the final number yet... a remodel you're doing in stages, or a cushion you'd like to have sitting there even if you never use it.
A HELOAN is a lump sum with a fixed rate and a fixed payment. That's the right tool when you already know the number. Consolidating balances. One defined project.
Both of them sit behind the mortgage you already have. Neither one replaces it.
After 1,300+ closed loans, the pattern I see is that people rarely regret using their equity. They regret using the wrong product for what they were trying to accomplish — usually because nobody took ten minutes to explain the difference.
Happy to be that ten minutes for anyone who wants it. Comment or message me.
Sarah Kubicki | Independence Home Loans | NMLS
#876986 | Company NMLS #2524174 | Equal Housing Lender
