See what your home equity can do for you.
A HELOC is a second mortgage that sits behind your first one. You tap your equity, and your current first mortgage stays right where it is.
Check what you qualify forWatch the welcome videoFree to apply. No obligation. For Arizona homeowners with a primary home, second home, or investment property.
Michael Bennett, NMLS #543232 · Park Grove Lending, LLC, NMLS #1625537 · Arizona License #0938213 / #0943301
Thanks for stopping by.
Take a minute to say hello. I'll tell you what this page is for, what a HELOC actually is, and how to get through the application without any surprises.
Everything here is meant to help you decide whether a HELOC makes sense for you. No pressure either way.
Mike Bennett
Loan officer, Park Grove Lending
About 30 years helping homeowners
What a HELOC is, in plain English
A home equity line of credit lets you borrow against the value you've built up in your home. It's a separate loan, secured by your property, that sits behind your first mortgage.
It's a second mortgage
Your first mortgage doesn't change. Same lender, same rate, same payment. The HELOC is its own loan with its own payment.
You borrow against equity
Equity is what your home is worth minus what you owe. A HELOC lets you put that equity to work for projects, debt, or whatever matters to you.
Interest-only for 3 years
During the 3-year draw period your payment covers interest only. After that you repay over 17 years, and the payment goes up because it now includes principal. Once you reach the 4th year, we would look to refinance you into a different loan with terms that fit your situation at that time. That's not required, but it could be more advantageous.
The rate is variable
It's tied to the Wall Street Journal Prime Rate plus a margin, so it can move up or down over time. Your rate and margin are shown to you before you sign.
Most of it is funded at closing
This program requires you to take at least 75% of the line when you close. Think of it as a loan you receive up front, not a card to keep in a drawer. The minimum loan amount is $25,000.
No prepayment penalty
Pay it down early, or pay it off completely, and you won't be charged a penalty for doing it.
Why a HELOC instead of refinancing your first mortgage?
If your current mortgage has a rate you're happy with, refinancing means giving it up to get at your equity. A HELOC lets you keep it.
| Cash-out refinance | HELOC | |
|---|---|---|
| Your current first mortgage | Paid off and replaced with a brand-new loan at today's rates | Stays in place, untouched |
| What you borrow against | The entire loan balance, plus the cash you take out | Only the amount you borrow against your equity |
| Your loan clock | Restarts with a new term | Your first mortgage keeps the time it has left |
| Paying it off early | Depends on the loan | No prepayment penalty |
| Interest rate type | Often fixed | Variable, so it can change |
Why people choose a HELOC
- They're keeping a first mortgage rate they don't want to lose.
- They only need to borrow against equity, not redo the whole loan.
- They want a faster, simpler process.
- They don't want a new 30-year clock.
What to weigh before you apply
- The rate is variable and can go up.
- Your payment increases when the interest-only period ends.
- Your home secures the loan.
- If you want a fixed rate and a steady payment for the whole loan, a refinance may fit better.
Fast access to the equity in your home
The application is built to be quick. Most of the work is a secure online process you can do from your phone.
- ApplyAbout 5 minutes online
- VerifyConnect income and bank info securely
- Review and signSee your terms before you commit
- FundsAs few as 5 to 7 days
Timing varies. It depends on how quickly your income and home information are verified, your property, and the signing process. It isn't guaranteed.
How applying works, step by step
Here's what you'll see when you click the button. You can stop and come back at any time.
Start my applicationCreate your secure account
Click the Apply button. It opens the secure application portal, where you'll enter your name, email, and phone number.
Tell us about your home
Enter the property address and tell us how you use it: your primary home, a second home, or an investment property. Add what you think it's worth and what you owe on your first mortgage. Based on what you enter, you'll first see the maximum loan you qualify for. From there you can adjust the amount to what you actually want, and all the details update automatically as you change it. The minimum loan amount is $25,000.
Verify your income
The portal asks you to connect to your payroll or bank through a secure link. If that doesn't work for you, you can upload your income documents instead. Self-employed? You may be able to use your business bank account, which requires a credit score above 680.
We check your credit and your home's value
Seeing what you qualify for starts with a soft credit pull, which doesn't affect your score. Only if you see your program and choose to move forward is a hard pull done. Most homes are valued with an automated valuation. Loans over $500,000 require an appraisal.
Review, sign, and get funded
You'll see your terms and costs before you sign. Everyone listed on the title signs the mortgage (the security instrument). Then your funds are sent.
Want to see every screen first?
Our step-by-step guide walks through the whole application with real screenshots, so nothing is a surprise.
Have these handy and it goes faster
Most people finish in a single sitting when they have the basics in front of them. Check them off as you gather them.
Your application will tell you exactly what it needs. This list covers what most people use.
Is your home a fit?
Here's a quick snapshot of what the program looks for in Arizona. Final eligibility is determined when you apply.
Usually a fit
- Single-family homes, 2 to 4 unit properties, condos, and PUDs
- Primary homes, second homes, and investment properties
- A credit score of 600 or higher. A higher score gives you more room to borrow
- On-time mortgage or rent payments recently
- A property value of at least $100,000
- Loan amounts from $25,000 to $750,000. Larger amounts have extra requirements
- Homes owned individually or in a revocable trust
How much you can borrow combined with your first mortgage depends on your credit score and how you use the property.
Not eligible
- Manufactured homes, co-ops, condotels, and log homes
- Mixed-use or agricultural property
- Homes currently listed for sale or listed in the last 60 days
- Homes titled in an LLC
Questions people ask
Will this change my first mortgage?
No. Your first mortgage keeps its current rate, payment, and terms. The HELOC is a separate loan, and you'll make a separate payment on it.
Is the interest rate fixed?
No. It's a variable rate based on the Wall Street Journal Prime Rate plus a margin, so it can go up or down. Your terms are shown before you sign.
What happens after the first 3 years?
The interest-only draw period ends and you begin a 17-year repayment period. Your payment will be higher because it includes principal as well as interest. Talk with me before then and we can look at your options.
Why do I have to take most of the line at closing?
This program requires a minimum 75% initial draw. It works more like a loan you receive up front than a line you leave unused.
Can I pay it off early?
Yes. There's no prepayment penalty.
What does it cost to apply?
Applying is free. If you move forward, any closing costs are shown in your disclosures before you sign.
Will applying affect my credit?
Not when you're just checking what you qualify for. That starts with a soft credit pull, which doesn't affect your score. You'll see your program first. If you choose to move forward, a hard credit pull is done at that point, and a hard pull can affect your score slightly.
Do I need an appraisal?
Usually not. Loans up to $500,000 typically use an automated valuation of your home. Larger loans require a full appraisal.
Can my spouse or someone else apply with me?
Yes, co-borrowers are allowed. Anyone who is on the title will also need to sign the mortgage (the security instrument) at closing.
Who is the lender?
Park Grove Lending, LLC originates your loan, and Lead Bank issues it.
Where is this available?
For properties in Arizona.
Ready to see what you qualify for?
It takes about 5 minutes, it's free, and there's no obligation.
Check what you qualify forRather talk to a person first? Call or text Mike at 480-227-3238 or email michaelb@parkgrovelending.com