The math behind keeping your first mortgage
A cash-out refinance replaces your whole mortgage at the current rate. If your first mortgage carries a low rate, a HELOC in second position is often the cheaper way to reach the same equity, because only the new money is priced at today's rates.
- Estimated CLTV = (existing liens + requested HELOC) ÷ property value
- Example: $800,000 home, $350,000 first mortgage, $250,000 HELOC = 75% CLTV
How much equity you can reach
- Owner-occupied 2nd lien: many standard tiers around 75–80% CLTV, scaling with credit
- Owner-occupied 3rd lien: limited scenarios, about 70% CLTV and smaller amounts
- Investment property 2nd lien: generally about 70% CLTV
Tap Equity Without Refinancing: terms at a glance
| Line amount | $25,000 – $750,000 for qualified applicants ($35,000 minimum in Texas) |
|---|---|
| Lien position | 1st, 2nd or eligible 3rd |
| Occupancy | Primary residence, second/vacation home or investment property |
| Terms | 10, 15, 20 or 30 years, fully amortizing |
| Funding | Generally fully drawn at closing; repaid principal may be redrawn |
| Credit | Primary residence tiers from about 600 FICO in limited cases; second home or investment generally 680+ |
| Max CLTV | Up to about 85% (primary, 1st lien); about 70–80% for investment property |
| Prepayment | No standard prepayment penalty |
| Use of funds | Legitimate business purpose only |
The Business-Purpose HELOC is offered through a third-party lending partner. Win-Win Capital Funding, LLC is an independent referral partner and may be compensated for applications submitted through this site. Win-Win does not make credit decisions. All loans are subject to credit approval, verified income, debt-to-income requirements, collateral review, title, valuation, state availability and other underwriting requirements, and terms may change without notice. Business-purpose use is required. A hard credit inquiry may be required. Borrowing against real estate places the property at risk if payments are not made.