Question 1

How much can I borrow with a HELOC in Atherton?

Accepted Answer

Most lenders allow borrowing up to 80-85% of your home's value minus existing mortgage debt. High-value properties may need specialized jumbo HELOC programs for credit lines exceeding $500,000.

Question 2

What happens during the draw period versus repayment period?

Accepted Answer

During the draw period (typically 10 years), you access funds as needed and usually pay interest only. In the repayment period (10-20 years), you can't withdraw funds and must pay principal plus interest.

Question 3

Are HELOC rates fixed or variable in California?

Accepted Answer

Most HELOCs have variable rates tied to the prime rate, adjusting monthly or quarterly. Many lenders offer fixed-rate conversion options where you can lock portions of your balance at a set rate.

Question 4

Can I pay off my HELOC early without penalty?

Accepted Answer

Many lenders charge early closure fees if you pay off and close the HELOC within 2-3 years. You can usually pay down the balance without penalty, but closing the line entirely may trigger fees.

Question 5

How does a HELOC affect my first mortgage?

Accepted Answer

A HELOC is a separate second lien that doesn't change your first mortgage terms or rate. Your first mortgage maintains priority position, and both loans are secured by the same property.

Home Equity Line of Credit (HELOC) Solutions for Atherton Homeowners