What is a HELOC and How Can You Use It in Arizona in 2026?

As a homeowner in Arizona, you've likely seen your property value increase. A Home Equity Line of Credit (HELOC) is one of the most popular ways to tap into that equity without selling your home.

HELOC vs. Cash-Out Refinance

A cash-out refinance replaces your *entire* mortgage with a new, larger one. A HELOC is different. It's a second mortgage that acts like a credit card. You get a revolving credit line with a set limit (e.g., $100,000) that you can draw from as needed for a set period (usually 10 years). You only pay interest on the amount you actually use.

Common Uses for a HELOC

• Home Improvements: It's perfect for a kitchen remodel or adding a pool, as you can pay contractors as work is completed.
• Debt Consolidation: Pay off high-interest credit cards with a lower-interest, secured HELOC.
• Emergency Fund: Having a HELOC open (even with a $0 balance) can be a powerful emergency fund for unexpected life events.

The Bottom Line

A HELOC is a flexible tool for responsible homeowners. It's a great option if you love your current mortgage's low interest rate but still need to access cash. We can help you decide if a HELOC or a cash-out refinance is the smarter move for your specific goals in 2026.