Question 1

How fast can I close a HELOC in Los Gatos?

Accepted Answer

Most HELOCs close in 15-25 days. Appraisals add time if your property has unique features or sits in a fire zone requiring extra review.

Question 2

Can I get a HELOC with a jumbo first mortgage?

Accepted Answer

Yes. Lenders treat the jumbo loan as part of the combined LTV calculation. Expect stricter credit and reserve requirements than with conforming first mortgages.

Question 3

What happens to my HELOC rate when the Fed cuts rates?

Accepted Answer

Your rate adjusts down when prime rate drops after Fed cuts. This typically happens within one billing cycle of the Fed announcement.

Question 4

Do I pay interest if I don't use the HELOC?

Accepted Answer

No. You only pay interest on the amount you draw. An unused HELOC costs nothing beyond potential annual fees, which many lenders waive.

Question 5

Can I deduct HELOC interest on my taxes?

Accepted Answer

Only if you use funds to buy, build, or improve your home. Check with a tax advisor since deduction rules changed in recent years.

HELOCs in Los Gatos: Tap Your Equity Without Refinancing Your Low Rate