Arizona Home Equity Line of Credit (HELOC)
Unlock the equity you've built in your Arizona home. A Home Equity Line of Credit (HELOC) gives you a flexible, reusable line of credit—like a credit card, but with much lower rates—secured by your property.
Why Get a HELOC in Arizona?
With home values in Phoenix, Scottsdale, and across the state at all-time highs, you may be sitting on a significant amount of equity. A HELOC is the smartest way to access it without touching your low-rate first mortgage.
- You have a great rate (e.g., 3-5%) on your main mortgage. Why would you do a cash-out refinance at today's higher rates? A HELOC is a *second* mortgage that leaves your primary loan untouched.
- You need flexible funds for big projects. Pay for a home renovation, college tuition, or consolidate high-interest credit card debt.
- You only pay for what you use. A HELOC gives you a "draw period" (usually 10 years) where you can pull funds as needed. You only pay interest on the amount you've drawn.
How a HELOC Works: Draw vs. Repayment
A HELOC is split into two phases:
- The Draw Period (Typically 10 Years): You can withdraw money up to your credit limit. During this time, your payments are typically interest-only, which keeps them very low.
- The Repayment Period (Typically 20 Years): You can no longer draw funds. Your loan balance is amortized, and you begin paying both principal and interest until the loan is paid off.
HELOC vs. Cash-Out Refinance
This is the most common question. The answer depends on your current mortgage rate.
- Choose a HELOC if: You have a low interest rate on your first mortgage that you want to keep.
- Consider a Cash-Out Refinance if: Today's rates are *lower* than your current rate, or if you prefer to have one single, fixed monthly payment instead of two separate loans.
Estimate Your Available Equity
Want to see how much you could borrow? Use our new HELOC calculator to estimate your available credit line and potential interest-only payment.
Jonathan Moses
Senior Loan Officer | NMLS #2064741
This guide was prepared by Jonathan Moses (NMLS #2064741), the senior loan officer and founder of Roadrunner AZ Lending. With years of experience in the Phoenix and Scottsdale markets, Jonathan is dedicated to providing expert, transparent advice. Learn more about Jonathan.