July 30, 2025
9 minutes
If your HELOC (Home Equity Line of Credit) draw period is ending or the variable rate is suddenly spiking, you’re likely asking: Can I refinance this? The short answer: Yes. But how and when you refinance matters just as much as whether you do.
We get it. When monthly payments grow unexpectedly or balloon payments loom, the financial stress is real. This guide walks you through your best options to refinance a HELOC, without needing a VA loan or specialty program. Whether you're a first-time homeowner or a seasoned real estate investor, the goal here is simple: to help you take back control of your home equity.
Let’s explore how.
Key Takeaways:
- Yes, you can refinance a HELOC, and it might be the smartest financial move if rates or your situation have changed.
- Options include converting to a fixed-rate loan, taking a new HELOC, or using a cash-out refinance.
- Each strategy has unique benefits and risks; make sure to compare APRs and closing costs.
- Always check your credit score, home equity, and long-term goals before refinancing.
What Is a HELOC and Why Refinance It?
A HELOC lets you borrow against your home equity, similar to a credit card. It usually comes with two phases:
- Draw Period (5–10 years) – You borrow and make interest-only payments.
- Repayment Period (10–20 years) – You begin repaying principal + interest.
Why Refinance?
- Rising Interest Rates – Most HELOCs have variable rates that can climb quickly.
- End of Draw Period – You may face a balloon payment or steep monthly hike.
- Better Loan Terms Available – Especially if your credit score or equity has improved.
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Your Refinance Options
1. Refinance to a Fixed-Rate Home Equity Loan
This option locks in a predictable monthly payment.
Pros:
- Stable interest rate
- Budget-friendly payments
Cons:
- Closing costs
- Might reduce the total available credit
2. HELOC-to-HELOC Refinance
You replace your existing HELOC with a new one, often with better terms.
Pros:
- Reset your draw period
- Take advantage of introductory rates
Cons:
- Still variable interest rate
- May extend the debt cycle
3. Cash-Out Refinance
Replace your existing mortgage + HELOC with a new primary mortgage.
Pros:
- Lower overall interest rate
- One consolidated payment
Cons:
- Full underwriting process
- Larger total loan amount
4. Personal Loan or Line of Credit
Best for small HELOC balances or when you want to avoid tapping into more home equity.
What Should You Watch Out For?
Trigger Terms & APR Transparency Any time an ad or lender mentions a specific interest rate, they’re required under the Truth in Lending Act (TILA) to also display the Annual Percentage Rate (APR) and loan terms. Always compare APR, not just the interest rate.
Be Wary of UDAAP Triggers Avoid lenders who:
- Downplay the cost of refinancing
- Exaggerate benefits
- Imply government affiliation (which is illegal under Regulation N)
Important: All marketing must disclose NMLS identifiers to comply with the SAFE Act. For example:
reAlpha Mortgage – NMLS #1743790.
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Why reAlpha and reAlpha Mortgage Stand Out?
When exploring your refinance options, transparency is key. That’s why platforms like ReAlpha and reAlpha Mortgage offer an edge.
- reAlpha Mortgage provides expert-guided lending with full transparency and borrower-first tools.
- ReAlpha is a commission-free homebuying platform, maximizing your savings.
Unlike traditional broker models, reAlpha puts your financial goals first - no hidden agendas or upsells.
FAQs
Can I refinance my HELOC without touching my first mortgage?
Yes, through a standalone home equity loan or HELOC-to-HELOC refinance.
Will refinancing a HELOC hurt my credit score?
Not necessarily. There may be a temporary dip due to a hard credit pull, but the long-term impact is often neutral or positive.
How long does it take to refinance a HELOC?
Anywhere from 15 to 45 days, depending on loan type and documentation.
Do I need equity in my home to refinance a HELOC?
Yes. Most lenders require at least 15–20% equity to qualify.
Final Thoughts: Take Control of Your HELOC Today
Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.
When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.
The rebate is simple, transparent, and applied directly at closing - no complicated hoops, no delayed payouts. Just real savings tied to using a fully integrated homebuying experience.
See how much you could save:
- Check your eligibility
- Explore homes that fit your budget today.
- Your next move could come with thousands back at closing.
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Explore your refinance savings with reAlpha Mortgage now.
Disclosures & Compliance Notice:
- This content is intended for educational purposes only and does not constitute financial or legal advice.
- All interest rates, APRs, and loan products referenced are examples only and subject to change without notice.
- Licensing Disclosure: reAlpha Mortgage – NMLS #1743790.
- This blog complies with TILA, RESPA, MAP Rule (Reg N), SAFE Act, and UDAAP standards under reAlpha Mortgage’s compliance guidelines.
- No guarantees of approval or rate offers are implied. Individual eligibility and terms will vary.
Commission-free platform description refers specifically to ReAlpha’s fee structure and not lender fees.
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Article by
Rocky Billore is a mortgage industry leader and Chief Sales Officer with over two decades of experience across residential and commercial lending. Since entering the industry in 2004, he has been directly involved in funding more than $1.4 billion in loans. A recognized expert in VA and government lending, Rocky combines deep program knowledge with a data driven, relationship-first leadership style. His work focuses on building scalable sales organizations, developing high performing teams, and aligning technology with real world lending outcomes to improve the homeownership experience.