Home / California HELOC / Refinance your HELOC

Already have a HELOC? You may have more room than you think.

If your line is maxed out, the draw period is ending or the variable rate worries you, there are three ways forward, and none of them touch your first mortgage.

Review my HELOC See how much I can borrow

Maxed out? Your home may have grown since you opened the line

Your current line was sized on what the home was worth on the day you opened it. Many California homes are worth a good deal more now, and you have also paid your first mortgage down since then. A new line is sized on today’s value and today’s balance, so the room can be much larger.

Most lenders will not put a second HELOC behind the first, because it would be a third lien. Instead, a new, larger line pays off the old one at closing, and you keep the difference available to draw.

Three ways forward

Replace it with a bigger line. A new HELOC pays off the old balance and gives you more room, with a fresh 10-year draw period. Best when you still want access to cash.
Lock the balance in a fixed-rate second. A closed-end second mortgage pays off the line and gives you one fixed payment with a payoff date. Best when the variable rate is the worry.
Fold it into a refinance. One new first mortgage pays off both loans. It only makes sense when your current first mortgage rate is close to today’s; see HELOC vs cash-out refinance for the math.

Draw period ending? Plan for the payment change

Most HELOCs let you pay interest only for the first ten years. When the draw period ends, the line stops lending and the payment converts to principal plus interest. That jump catches a lot of people by surprise.

$150,000 balance at 7.49%	Monthly payment
During the draw (interest only)	$936
After the draw (repaid over 20 years)	$1,207

Illustration at our starting rate, not a quote. Your line’s rate, margin and repayment term are in your HELOC agreement; older lines often repay over shorter terms, which makes the jump larger.

The time to act is six to twelve months before your end-of-draw date, while you still have a choice of options. A replacement line restarts the draw period; a fixed second turns the balance into a predictable payment.

What we need to review your line

Your latest HELOC statement, showing the balance, limit, rate and margin.
Your first mortgage statement, for the balance and rate.
Your best guess at the home’s value. We confirm it before closing.
Your end-of-draw date, if you know it. It is in your HELOC agreement.

Mike compares a replacement line, a fixed second and, when it makes sense, a refinance, and sends you the numbers side by side. Self-employed? The replacement line can be a bank statement HELOC.

How much room do you have now?

Mortgage you owe
What you could borrow
Equity that stays in the home

Home value Mortgage balance Your current rate% Cash you need

Monthly interest, first year
Keep your mortgage, add a HELOC
Cash-out refinance at an estimated 30-year rate*
Difference

Interest only, at the 7.49% APR starting HELOC rate and an estimated 30-year rate. Examples only, not an offer of credit. Principal payments, closing costs and your rate depend on your credit and property. *Estimate, live pricing unavailable. HELOC terms

HELOC terms

Rates from: 7.49% APR
Line amounts: $50,000 to $800,000
Combined LTV up to: 90%
Draw period: 10 years
Repayment: 20 years

HELOC rates are variable, based on the prime rate plus a margin, and can change after closing. 7.49% APR is the starting rate as of October 2026 for qualified borrowers with strong credit and lower combined loan-to-value; your rate may be higher. Maximum APR 18%. Fees to open the line range from $0 to $1,500. No annual fee. Property insurance is required, and flood insurance where applicable. Subject to credit approval and property valuation.

Questions people ask

Can I get a second HELOC if mine is maxed out?

A HELOC behind another HELOC would be a third lien, and most lenders will not make one. The usual route is to replace your current line with a new, larger one that pays off the old balance at closing. If your home has gained value since you opened the first line, there may be far more room than you think.

Can I just ask my bank to raise my limit?

You can ask, and some banks will do it with a new appraisal. Many will not, or will only raise it to their own limit. Shopping a replacement line lets you compare the new limit, margin and fees against what your bank offers.

What happens when my draw period ends?

The line stops letting you borrow, and the payment changes from interest only to principal plus interest over the repayment period. On a $150,000 balance at 7.49%, that is about $936 a month interest only versus about $1,207 a month repaid over 20 years. Check your statement or agreement for your exact end-of-draw date.

Will refinancing my HELOC restart the draw period?

Replacing it with a new HELOC starts a new 10-year draw period on the new line. Moving the balance to a fixed-rate second ends the draw: you get a fixed payment that pays it off on a set schedule instead.

Do I have to touch my first mortgage?

No. Replacing a HELOC or moving it to a fixed second leaves your first mortgage and its rate alone. Folding everything into one cash-out refinance only makes sense when your first mortgage rate is close to today’s rates.

How much equity do I need?

Our programs go up to 90% combined loan-to-value on a primary home: your first mortgage plus the new line, divided by the home’s value. Most programs price best at 80% or below.

Have Mike review your HELOC

Tell us your current line, its balance and what you owe on the first mortgage. Mike will show what a replacement line or a fixed second would look like.

Prefer to talk? Call 800-801-5626.