Home Equity Line of Credit (HELOC)

For homeowners who need flexibility in accessing their home equity.

Draw Cash from Your Home’s Equity Over Time

Secured by your home’s equity, a HELOC brokered by RoundPoint Mortgage Servicing Corporation* allows homeowners to draw cash from their home’s equity any time for almost any purpose during the agreed-upon draw period. HELOCs are a great option for those who wish to have an additional line of credit for emergencies or to finance expenses with low mortgage interest rates. 


How Do HELOCs Work?

When applying for a HELOC, you’ll decide how long you want to be able to access cash – this is called the draw period and is typically 5-10 years. At closing, or after the rescission period, if applicable, you’ll be able to make your initial draw. 

During the draw period, you can withdraw any amount up to the limit at any time. You’ll make monthly payments of principal and interest on the amount you’ve used, or your loan may require you only to make interest payments on any outstanding amount. Once the draw period ends, the repayment period of the loan begins, usually 10-20 years, during which you will repay principal, along with interest, in the form of monthly payments.



What are the Benefits of a HELOC?

  • Use as much or as little of the credit line as you’d like.
  • Pay only the interest on the cash you withdraw during the draw period (if your loan is structured this way).
  • Your money is yours to use as you wish: consolidate debt, fund home improvements, start a business, pay for medical expenses, or however you want.
  • Has a lower interest rate than credit cards or personal loans.

What Are the Main Differences Between a HELOC, Cash-Out Refinance, and a Home Equity Loan? 

While all three options provide the homeowner with cash, each has different features and equity requirements that are important to distinguish. 

Reference the below chart, then contact your local RoundPoint Mortgage Servicing Corporation loan officer to discuss which option is right for your needs.




Cash-Out Refinance

Home Equity Loan

Unique Features

Provides a line of credit that can be accessed as cash for several years and is borrowed against the equity of the home.

Replaces current loan with a bigger home loan, with the difference in loan amounts provided in cash to the homeowner.

Provides the borrower one lump sum of cash borrowed against the equity in the home.

Requires Home Equity




Monthly Repayments

Variable Rate

Variable or Fixed Rate

Fixed Rate

Replaces Current Mortgage




Ability to Access Additional Cash in the Future




How is Cash Provided?

Revolving line of credit with a fixed limit

One lump sum

One lump sum

* The RoundPoint Mortgage Servicing Corporation Home Equity Line of Credit (HELOC) Program is brokered through a third party and is not available in Alabama, Alaska, Hawaii, Louisiana, Mississippi, Oklahoma, Texas, or West Virginia.