Question 1

How much can I borrow with a HELOC in Gilroy?

Accepted Answer

It depends on your home's appraised value and existing mortgage balance. Most lenders cap total borrowing at 80% of your home's value.

Question 2

Is a HELOC rate fixed or variable?

Accepted Answer

HELOCs are variable-rate products tied to the prime rate. Your payment can rise or fall as rates change.

Question 3

Can I use a HELOC to build an ADU in Gilroy?

Accepted Answer

Yes — and it's one of the best uses. You draw funds as construction costs hit, so you're not paying interest on money you haven't spent yet.

Question 4

What credit score do I need for a HELOC?

Accepted Answer

Most lenders start at 620. A score above 700 will get you better rates and a higher credit limit.

Question 5

Does a HELOC affect my existing mortgage?

Accepted Answer

No. A HELOC is a second lien. Your first mortgage rate and terms stay exactly as they are.

Question 6

How long does a HELOC draw period last?

Accepted Answer

Typically 10 years. After that, you enter the repayment period — usually 20 years — and can no longer draw funds.

HELOCs in Gilroy: Tap Your Home Equity on Your Terms