Put Your Home Equity to Work , With a Plan.
I'm Corey Moser, a Utah mortgage broker with nearly 30 years of experience. I help homeowners understand their available equity, compare financing options, and evaluate the costs and trade-offs of borrowing against their property. The goal isn't simply to borrow more money. It's to determine whether accessing your home equity actually makes sense for your circumstances.
Cash-Out Refinancing at a Glance
- Replace your current mortgage with a new loan based on your qualifications and available home equity
- Receive eligible cash proceeds after required payoffs and expenses
- Consider funds for home improvements, debt consolidation, or other qualifying goals
- Compare cash-out refinancing with HELOC and home equity loan alternatives
Is Replacing Your Current Mortgage Worth It?
A cash-out refinance changes the terms of your first mortgage. If you already have a favorable interest rate, a HELOC or home equity loan may be worth comparing before refinancing your entire balance.
Cash-out refinancing increases borrowing secured by your home. Loan amounts, cash proceeds, rates, fees, repayment terms, and eligibility vary by program and borrower. A cash-out refinance replaces your existing mortgage and may result in a higher interest rate, larger monthly payment, or additional borrowing costs. Failure to make required mortgage payments could result in foreclosure. All financing is subject to lender approval.
How Does a Cash-Out Refinance Work?
A cash-out refinance replaces your existing mortgage with a new loan. The new mortgage pays off your current loan, covers applicable financed expenses, and may provide additional cash from your available home equity. Here's how the process typically works.
Review Your Home's Value and Existing Mortgage
We begin by reviewing your estimated property value, current mortgage balance, and any additional liens against the home.
These details help determine how much equity you may have available for refinancing.
Determine Your Eligible New Loan Amount
Your available cash-out amount depends on the loan program's maximum loan-to-value ratio, property eligibility, credit, income, and underwriting requirements.
Different loan programs may permit different borrowing limits.
Pay Off Your Existing Mortgage
At closing, proceeds from the new mortgage are used to satisfy the existing mortgage being refinanced.
Other required lien payoffs, closing expenses, and prepaid items are handled according to the transaction and loan program.
Receive Your Eligible Cash Proceeds
After required payoffs and expenses, the remaining eligible funds are disbursed to you following the applicable closing and funding requirements.
Your new mortgage replaces the old one, with a new interest rate, repayment schedule, and required payment.
Example: Turning Available Home Equity Into Cash
Suppose your home is valued at $600,000 and your existing mortgage payoff is $300,000. For this example, assume you qualify for a program allowing an 80% loan-to-value cash-out refinance.
How the Numbers Break Down
This example assumes a $480,000 new mortgage, $300,000 existing payoff, and $8,000 in expenses paid from the loan proceeds. It assumes no other liens or required deductions. Amounts are hypothetical. Actual cash proceeds may differ based on the verified payoff, costs, program limits, property valuation, and underwriting.
What Happens to Your Existing Mortgage?
Before Refinancing
You have your current mortgage, including its existing interest rate, outstanding balance, and remaining repayment term.
Those terms determine your current payment and the cost of keeping the loan.
After Refinancing
Your old mortgage is paid off and replaced by a new mortgage.
The new loan may have a different interest rate, balance, payment, repayment term, and total borrowing cost.
Accessing Equity Also Means Taking On Debt
A cash-out refinance does not create additional home equity. Instead, it allows you to borrow against equity you've already built.
In the example above, the homeowner receives $172,000 in estimated cash proceeds, but the new mortgage balance becomes $480,000.
That makes it important to compare the new monthly payment, interest rate, closing costs, and long-term repayment obligations before moving forward.
Cash-out refinancing is subject to credit, income, property valuation, available equity, occupancy, loan-to-value, lien, seasoning, and lender underwriting requirements. The 80% LTV example is illustrative and does not represent the maximum available under every loan program. Closing costs and financed expenses increase the amount borrowed or reduce net proceeds. Refinancing may increase required monthly payments or total borrowing costs. Failure to make mortgage payments may result in foreclosure. This information is educational only and is not an offer to lend.
What Can Cash-Out Refinance Funds Be Used For?
Cash-out refinancing may provide eligible homeowners with access to a portion of their home equity for a variety of financial needs. Some homeowners use the proceeds for improvements to their home. Others may be looking to consolidate debt or cover a significant planned expense. Whatever the purpose, the new borrowing becomes part of a mortgage secured by your property. That makes it important to consider both the immediate benefit and the long-term repayment cost.
Home Improvements & Repairs
A cash-out refinance may provide funds for home renovations, major repairs, or improvements you've been planning.
Potential projects might include replacing a roof, updating a kitchen, finishing a basement, or improving accessibility.
It's worth comparing the projected project cost with the mortgage expenses and considering whether the improvement will add value, utility, or comfort to your home.
Debt Consolidation
Some homeowners explore using cash-out proceeds to pay off credit cards, personal loans, or other balances.
Consolidating debt may simplify payments or reduce the amount due each month.
However, moving unsecured debt into a mortgage makes that borrowing part of debt secured by your home. Extending repayment over a longer period can also increase total interest costs.
Education & Other Major Costs
Eligible homeowners may consider accessing equity to cover substantial expenses such as education costs or other major financial needs.
Before doing so, it's important to compare the mortgage financing cost with alternatives that may have different repayment terms or protections.
Borrowing against your home for a short-term expense can create a much longer-term obligation.
Investment-Related Uses
Some homeowners consider using equity toward another property, a business, or other investments.
These decisions deserve careful consideration because investment returns are not guaranteed, while mortgage repayment obligations remain.
Even if an investment loses value or doesn't produce expected income, the debt secured by your home must still be repaid.
Questions to Ask Before Using Your Home Equity
Before choosing a cash-out refinance, I recommend considering the following:
- What is the specific purpose of the funds, and how much do I actually need?
- How will the new mortgage payment compare with my current payment?
- Will replacing my existing mortgage increase the interest rate on money I already owe?
- What will I pay in closing costs, discount points, and additional interest over time?
- Will the new repayment term extend how long I'm paying mortgage interest?
- Could a HELOC, home equity loan, or another financing option better fit my circumstances?
Just Because You Can Access Equity Doesn't Mean You Should Borrow All of It
Home equity is an important financial asset. Accessing some of it may help accomplish a specific goal, but borrowing more than necessary also increases your debt and financing costs.
If you're considering cash-out refinancing, I recommend focusing on the amount actually needed and comparing the cost of that borrowing with the alternatives.
Preserving equity for future housing needs or unexpected expenses may also be an important consideration.
Want to Access Equity Without Replacing Your First Mortgage?
If you already have a favorable first-mortgage rate, a HELOC or home equity loan may be worth comparing. These options can allow eligible homeowners to keep their existing first mortgage in place while borrowing against available equity. A separate loan brings its own payment requirements, rates, fees, and repayment terms.
Explore HELOC & Home Equity LoansCash-out refinancing is subject to credit, income, property value, loan-to-value ratios, equity, occupancy, seasoning, and lender underwriting requirements. Permitted uses of proceeds, cash-out limits, pricing, and eligibility may vary by loan program. Refinancing may increase your loan balance, monthly payment, repayment term, and total borrowing costs. Your home serves as collateral, and failure to make required payments may result in foreclosure. This information is educational only and does not constitute a loan offer or investment advice.
Cash-Out Refinancing for Debt Consolidation
If you're carrying credit card balances, personal loans, or other debts, combining them into a new mortgage may sound appealing. A cash-out refinance may allow eligible homeowners to pay off certain existing debts using their available home equity. But reducing your monthly payments isn't the same as reducing your total borrowing costs. Before consolidating debt, it's important to understand what changes and what risks may be introduced.
Potentially Lower Monthly Payments
Paying off higher-payment debts through a mortgage may reduce the amount required each month.
However, part of that reduction may come from spreading repayment over a much longer period.
A lower payment should be considered alongside the total interest and fees you may pay.
Simplifying Your Monthly Obligations
Debt consolidation may reduce the number of separate payments you manage.
But combining debts doesn't eliminate what you owe.
It changes how the debt is financed and repaid, and may introduce different costs.
Longer Repayment May Mean More Interest
Credit cards and personal loans may have different rates and repayment schedules.
Moving a relatively short-term debt into a 30-year mortgage can significantly extend the time over which interest accumulates.
Even with a lower interest rate, the total cost may increase.
Your Home Becomes Collateral for the Debt
Many credit cards and personal loans are unsecured.
When those debts are paid off through cash-out refinancing, the amount borrowed becomes part of your mortgage.
If you're unable to make required mortgage payments, your home may be at risk of foreclosure.
Example: A Lower Payment Can Still Cost More
Consider a hypothetical $30,000 debt balance. The comparison below shows the difference between paying it off over five years at a higher interest rate and spreading the same principal over 30 years at a lower rate.
Five-Year Debt Repayment
Thirty-Year Mortgage Repayment
Hypothetical amortization comparison, not a rate quote or actual loan offer. Assumes fixed rates, level monthly amortizing payments, no fees, and no additional payments. Amounts are rounded. The mortgage example isolates the payment and interest attributable to an additional $30,000 of principal. It is not the payment on the entire cash-out refinance. A real refinance also replaces any existing mortgage balance and may incur closing costs, rate changes, and other expenses. Credit card minimum payments may not follow the five-year amortization shown in this illustration.
The Biggest Risk: Turning Unsecured Debt Into Home-Secured Debt
When you pay off credit cards with cash-out refinance proceeds, the credit card balances may be eliminated. But the new mortgage includes the money used to pay them off.
That debt is now secured by your property. Missing mortgage payments can lead to foreclosure, even if the original debts would not have directly placed your home at risk.
Another concern is accumulating new balances on credit cards after consolidation. Without a sustainable budget and repayment plan, you could end up with both a larger mortgage and additional consumer debt.
Questions Worth Asking Before Consolidating Debt
- How much debt am I consolidating, and what are the current rates and payoff schedules?
- How will my total monthly obligations change after refinancing?
- Will I be increasing the rate on my existing mortgage balance?
- How much will I pay in closing costs and additional interest over time?
- Am I extending debts that could otherwise be paid off sooner?
- Do I have a realistic plan to avoid rebuilding the balances being consolidated?
- Could a different debt repayment or financing strategy be more appropriate?
Are There Alternatives to a Cash-Out Refinance?
Depending on your financial circumstances, alternatives may include paying debts down under their current terms, negotiating payment arrangements, exploring a personal loan, or working with a nonprofit credit counselor.
A home equity loan or HELOC may also be worth comparing if you want to keep your existing first-mortgage rate. Remember that those loans also use your home as collateral.
Learn About Utah HELOC & Home Equity Options
The goal should be a more sustainable financial situation, not simply a smaller payment this month.
Cash-out refinancing is subject to credit, income, equity, property value, occupancy, loan-to-value, seasoning, and lender underwriting requirements. Interest rates, closing expenses, debt repayment terms, and available loan amounts vary by transaction. Debt consolidation may reduce monthly payments while increasing total interest costs or extending repayment. Consolidating unsecured debt into a mortgage makes that borrowing part of debt secured by the property. Failure to make required mortgage payments could result in foreclosure. Illustrations are hypothetical, educational examples only and are not financing offers or guarantees of savings.
How Much Cash Can You Take Out With a Refinance?
Your home's value and existing mortgage balance help determine how much equity you've built. However, lenders generally limit the amount you can borrow based on the loan program, property type, occupancy, and other qualifying requirements. Use this calculator to explore an illustrative cash-out refinancing scenario.
Cash-Out Refinance Equity Calculator
Adjust the amounts below to estimate your potential gross and net cash-out proceeds. This is an educational estimate, not a qualification or loan approval.
Based on the example inputs, estimated cash proceeds are $172,000 after the first-mortgage payoff and closing costs.
How the Estimate Is Calculated
Calculations use: estimated home value multiplied by the selected LTV percentage, minus the specified mortgage payoffs, other liens, and closing expenses. Negative cash proceeds are displayed as zero, with a warning that the scenario does not support cash-out proceeds. This does not establish qualification, an approved loan amount, or a commitment to lend.
What Determines How Much Equity You Can Access?
Property Value & Equity
Equity is generally the difference between your home's value and the amounts secured against the property.
A higher property value or lower mortgage balance may increase available equity, but equity alone does not determine how much cash can be withdrawn.
Loan-to-Value Limits
Loan-to-value, or LTV, compares the new mortgage amount with the property's value.
For example, an illustrative $480,000 loan on a $600,000 property represents an 80% LTV.
Maximum permitted ratios depend on loan type, occupancy, property characteristics, and underwriting.
Credit, Income & Eligibility
Lenders also review borrower qualifications, which may include credit history, income, existing obligations, debt-to-income ratio, and other factors.
Even when sufficient equity exists, the proposed new mortgage must meet applicable program requirements.
Existing Liens & Expenses
Current mortgage payoffs, other liens, settlement charges, and prepaid expenses can reduce the cash available at closing.
Some subordinate financing may be eligible to remain in place under specific conditions. The treatment depends on the program and lender.
Available Equity Isn't the Same as Available Cash
You might have substantial equity in your home, but a lender generally will not allow you to borrow the entire amount.
Cash-out refinancing is limited by applicable program rules and your individual qualifications. You also need to account for existing mortgage payoffs and transaction expenses.
Before moving forward, I recommend comparing the new loan balance, interest rate, monthly payment, closing costs, and repayment term with your existing mortgage.
This calculator provides hypothetical educational estimates only. Actual mortgage values, loan-to-value limits, cash-out proceeds, closing costs, lien payoff requirements, interest rates, and underwriting qualifications vary. An 80% LTV may be available for certain eligible conventional cash-out refinances, but it is not a universal limit. Loan program, occupancy, property type, credit, income, seasoning, and appraisal requirements may reduce or eliminate eligibility. Refinancing increases the amount secured by your home. Failure to make required payments may result in foreclosure. Estimates are not financing offers or loan approvals.
Cash-Out Refinance vs. HELOC vs. Home Equity Loan
If you've built equity in your Utah home, there may be more than one way to access it.
A cash-out refinance, home equity line of credit (HELOC), and home equity loan may all provide access to funds. However, they work differently and can have very different costs.
Cash-Out Refinance
A cash-out refinance replaces your existing first mortgage with a new mortgage that is generally larger than your current balance.
After paying off the existing mortgage and applicable costs, eligible remaining proceeds may be available to you.
- Replaces the existing first mortgage.
- May provide a lump sum of available equity.
- New interest rate and repayment terms apply to the entire new loan.
- May involve closing costs, a new loan term, and a change in total interest.
Home Equity Line of Credit (HELOC)
A HELOC is a revolving line of credit secured by your property.
Eligible borrowers can generally draw funds during a defined draw period, subject to the agreement and available credit.
- Generally keeps your existing first mortgage in place.
- Provides flexible access to available credit during the draw period.
- Many HELOCs carry variable interest rates. Some offer fixed-rate features.
- Payments may increase when rates change or the loan enters repayment.
Home Equity Loan
A home equity loan generally provides a lump sum secured by your home.
Unlike a revolving HELOC, the borrower typically repays the loan over a defined term.
- Generally allows the existing first mortgage to remain.
- Funds are usually disbursed as a lump sum.
- Commonly has a fixed rate and scheduled payments.
- Adds a separate loan payment and may involve financing fees.
Compare the Main Differences
Here's how these home equity financing structures typically compare.
Already Have a Low First-Mortgage Rate?
This is one of the most important considerations when comparing home equity financing options.
If your current mortgage carries a relatively low rate, a cash-out refinance would generally replace that loan with a new first mortgage.
If the new rate is higher, that rate could apply to your entire refinanced balance, not just the additional cash received.
A separate HELOC or home equity loan may allow you to preserve the existing first mortgage, although you'll have an additional payment and separate loan costs.
The right comparison is the combined cost of your first and second mortgages versus the cost of refinancing everything into one new loan.
Which Home Equity Option Should You Consider?
There's no single financing structure that's right for every homeowner. Before deciding, consider these questions.
- Am I comfortable replacing the interest rate on my existing first mortgage?
- Do I need the funds all at once, or would periodic access be more useful?
- Would I prefer a fixed payment, or am I comfortable with variable-rate risk?
- What are the interest rates, APRs, and total financing costs of each option?
- How much equity would remain after borrowing?
- Can I comfortably afford the required payments if my financial circumstances change?
- How long do I expect to keep the home and financing?
Using Home Equity Should Start With a Comparison
A cash-out refinance may be appropriate in some situations, while a HELOC or home equity loan may offer advantages in others.
The key is to understand how each option affects your existing mortgage, required payments, financing costs, and long-term goals.
Accessing equity creates additional debt secured by your home. Borrowers should evaluate both affordability and repayment risk.
General educational information only. Cash-out refinances, HELOCs, and home equity loans are secured by your property. Failure to meet repayment obligations may result in foreclosure. Actual interest rates, APRs, available equity, fees, payment structures, loan terms, and eligibility depend on the borrower, property, lender, and loan program. Refinancing may increase the total interest paid over the life of a loan. No financing approval, rate guarantee, or commitment to lend is implied.
Cash-Out Refinance Programs & Qualifications in Utah
There isn't just one type of cash-out refinance. Conventional, FHA, and VA loan programs have different rules concerning home equity, credit qualifications, occupancy, mortgage history, and available loan amounts. Understanding the differences can help you compare your available options before deciding whether to refinance.
Conventional Cash-Out Refinance
Conventional cash-out refinancing may be available to eligible homeowners who want to access equity through a new first mortgage.
- Conventional programs have property-specific loan-to-value limits.
- An 80% maximum LTV is common for eligible one-unit primary residences.
- Credit, income, appraisal, and underwriting rules apply.
- Ownership and existing-mortgage seasoning requirements may apply.
Fannie Mae generally requires an existing first mortgage being refinanced to be at least 12 months old and at least one borrower to have been on title for six months, subject to exceptions.
Learn About Conventional LoansFHA Cash-Out Refinance
FHA cash-out refinancing may be an option for eligible homeowners who meet FHA's credit, income, property, and mortgage payment history requirements.
- Generally limited to owner-occupied principal residences.
- The standard maximum cash-out LTV is 80%.
- Generally requires 12 months of ownership and occupancy, with applicable exceptions.
- FHA mortgage insurance requirements apply.
An FHA cash-out refinance is different from an FHA Streamline, which is not intended to provide substantial cash proceeds.
Explore FHA Loan OptionsVA Cash-Out Refinance
Eligible veterans, service members, and other qualifying borrowers may be able to refinance using a VA-backed cash-out mortgage.
- VA home loan eligibility is required.
- May refinance an eligible existing VA or non-VA mortgage.
- The property must meet applicable occupancy requirements.
- VA appraisal, income, credit, and lender requirements apply.
Available loan amounts and cash proceeds depend on entitlement, property value, underwriting, and lender requirements. A VA funding fee may apply unless the borrower is exempt.
Learn About VA Loans in UtahWhat Do Lenders Review for a Cash-Out Refinance?
Although each program has its own requirements, several factors commonly influence refinance eligibility and pricing.
Home Value & Equity
The property value, existing mortgage balance, and any other liens help establish borrowing capacity.
Credit Profile
Credit history, mortgage payment performance, and applicable score requirements may affect eligibility and loan pricing.
Income & Debts
Income documentation, existing obligations, and debt-to-income calculations are reviewed according to program guidelines.
Property & Loan History
Occupancy, property type, appraisal, ownership duration, and existing mortgage seasoning can affect loan eligibility.
Just Purchased or Recently Refinanced?
Cash-out refinancing may involve waiting periods based on how long you've owned the property or how recently your existing mortgage was originated.
For example, Fannie Mae generally requires the existing first mortgage being refinanced to be at least 12 months old, with certain exceptions.
Other program rules may apply to the length of property ownership, principal-residence occupancy, and mortgage payment history.
Some specific transactions, including eligible delayed-financing scenarios, may be treated differently. It's important to verify the requirements before assuming you must wait or are eligible to refinance immediately.
Cash-Out Refinance Frequently Asked Questions
Here are answers to some of the questions Utah homeowners frequently ask about accessing equity through refinancing.
How much equity do I need for a cash-out refinance?
It depends on the loan program, property type, occupancy, and underwriting requirements.
For certain conventional one-unit primary-residence loans, an 80% loan-to-value limit is common. FHA cash-out refinancing also generally has an 80% maximum LTV.
Those percentages are not universal. Other property types, programs, or lender requirements may produce different limits.
What credit score do I need for cash-out refinancing?
There is no universal minimum score across all cash-out refinance loan programs.
Conventional, FHA, and VA loans have different underwriting requirements, and individual lenders may apply additional standards.
Your credit history, income, existing debts, property value, and other qualifications also influence available options.
Can I cash out 100% of my home's value?
Most standard cash-out refinancing programs do not allow you to withdraw the entire value of your home.
Available borrowing is limited by program-specific loan-to-value rules, your qualifications, mortgage payoffs, and closing expenses.
Some VA transactions may permit higher LTV ratios than conventional or FHA cash-out loans, subject to VA rules and lender restrictions.
Do I need an appraisal?
Many cash-out refinance transactions require an appraisal to establish the property's value.
Some eligible conventional transactions may receive an acceptable automated valuation or appraisal waiver.
The lender determines what valuation is required based on the loan program and underwriting.
Can I get a cash-out refinance on a rental property?
Some conventional cash-out refinance programs may permit eligible investment properties, subject to lower LTV limits and additional underwriting requirements.
FHA cash-out refinancing is generally intended for owner-occupied principal residences, not investment properties.
Investors may also wish to explore specialized financing such as DSCR loans, depending on the property and financial circumstances.
Are cash-out refinance proceeds taxable income?
Borrowed funds received through a bona fide cash-out refinance generally are not treated as taxable income because the money must be repaid.
However, the deductibility of mortgage interest depends on federal tax rules and how the funds are used.
Consult a qualified tax professional about your specific situation.
How soon after closing will I receive the cash?
Funding and disbursement timing depend on the transaction, property occupancy, lender procedures, and applicable law.
For many refinances secured by a principal residence, a federal three-business-day right-of-rescission period applies after closing.
Funds are generally not disbursed until the applicable rescission period has expired.
Certain transactions and property types may be treated differently.
Is a cash-out refinance better than a HELOC?
Neither option is automatically better for every homeowner.
A cash-out refinance replaces the existing first mortgage. A HELOC may let you retain that first mortgage while adding a separate credit line.
If your current mortgage rate is particularly favorable, keeping it may be worth considering.
Compare the interest rates, fees, payment requirements, repayment schedules, and total costs of both options.
Prefer to Keep Your Existing First Mortgage?
If you have an attractive interest rate on your current mortgage, you may want to compare a cash-out refinance with a HELOC or home equity loan. Depending on your qualifications, these alternatives may allow you to access equity without replacing your existing first mortgage.
Explore HELOC & Home Equity OptionsLoan program descriptions are educational only. Cash-out refinancing is subject to credit, income, property value, occupancy, equity, maximum LTV, mortgage payment history, seasoning, appraisal, and lender underwriting. Conventional, FHA, and VA programs have different eligibility and mortgage insurance or funding-fee requirements. Program guidelines and lender requirements may change. Refinancing replaces an existing mortgage, may increase your outstanding debt and total borrowing costs, and uses your home as collateral. Failure to make required mortgage payments may result in foreclosure. Tax information is general educational information, not individualized advice. Consult a qualified tax adviser. No particular loan amount, rate, cash proceeds, or approval is guaranteed.
Your Home Equity Gives You Options. Let's Find the Right Approach.
Accessing your home equity may help you accomplish important financial goals. But choosing the right financing option matters just as much as deciding how much to borrow.
I'm Corey Moser, a Utah mortgage broker with nearly 30 years of experience. I help homeowners compare cash-out refinancing with HELOC and home equity loan alternatives. Together, we can review the available options, estimated payments, closing costs, interest rates, and long-term trade-offs. My goal isn't to encourage you to borrow more than you need. It's to help you understand which approach makes sense for your situation.
Prefer to talk? Call me directly at (801) 810-9445
What Would a Home Equity Review Include?
We'll start by reviewing your estimated home value, existing mortgage balance, current interest rate, and the amount of money you're considering borrowing. From there, we can compare potential cash-out refinance, HELOC, and home equity loan options. The goal is to understand not only the amount you may qualify to borrow, but also how the payment, costs, and repayment terms could affect your finances.
Have a Low First-Mortgage Rate?
You may not need to replace your current mortgage to access available equity. Learn how a HELOC or home equity loan could provide another financing option while keeping your first mortgage in place.
Explore Utah HELOC & Home Equity LoansCorey Moser | NMLS #274942 Nationwide Loans, Inc. | NMLS #1799965 Equal Housing Lender
Cash-out refinancing, home equity loans, and HELOCs are secured by real property. Eligibility, available loan amounts, cash proceeds, interest rates, APR, closing costs, loan-to-value limits, and repayment terms vary by program, borrower, and lender. Cash-out refinancing replaces an existing mortgage and may increase total debt and borrowing costs. HELOCs and home equity loans may add separate repayment obligations while leaving an existing first mortgage in place. Failure to make required payments may result in foreclosure. A request for a loan review does not constitute loan approval, a rate guarantee, or a commitment to lend.