How to use your home equity to fund your next move
Finding funds for down payment options on your next home can be a daunting task, but if you’re already a homeowner, you could access the value of your property to help fund your move. OriginPoint LLC fka Guaranteed Rate Affinity, LLC (“OriginPoint”) can help you figure out how much cash you could access with a couple of options.
Home prices have increased annually by an average 3.3% across the U.S. as of March 2025, so the value of your home might have gone up more than you expected. Accessing that additional value is simple and could be the key to making that move.
Ready to apply? Apply now to get started on your homebuying journey.
Home Equity Line of Credit (HELOC)
A Home Equity Line of Credit (HELOC) can be a great way to tap into a new source of funds to pay for just about anything, including as a down payment option for a new home. Unlike some other types of loans, OriginPoint HELOCs don’t limit how you use your funds.*
And because OriginPoint HELOCs fund so fast — especially compared with a traditional HELOC — you could have money in your account in as little as five days.**
OriginPoint's HELOC lets homeowners borrow money based on their available equity — the difference between their home’s value and what’s still owed on their mortgage. You can draw on that difference to fund your move and pay it back later.
If you’re considering a HELOC, you’ll need to meet certain lender requirements before you can access funds. Here are a few things you’ll want to check.
Credit score
Most lenders require a credit score of at least 620 to qualify for a HELOC, but a higher credit score could help you secure a lower rate.
Debt-to-income ratio
Lenders will evaluate the percentage of your monthly income that goes toward debt to ensure you can handle another financial product. A DTI below 43% is ideal, as it shows lenders that your financial situation is stable.
Home equity
Your home equity is the difference between your home’s value and what you still owe on your first mortgage. You typically need at least 15% equity in your home to qualify for a HELOC.
Home appraisal
Some lenders require a property appraisal to ensure they are lending based on accurate market value, but we use an alternative method to determine home value, so no home appraisal is required for a HELOC.
Ready to take advantage of your home equity? Start your application to get the benefits a HELOC has to offer.
Cash-out refinance
A cash-out refinance*** is just what it sounds like: You replace your current mortgage with a larger loan and get the difference back in cash to use for expenses, including down payment options for a new home.
When you sell your current home, what you get from the sale could pay off the new mortgage, including the amount of cash you took out.
With that in mind, you want to have a clear view of your financial situation and the potential risks of taking on a bigger mortgage. You will need to repay that money to your lender, but it’ll be bundled into your refinanced mortgage. As such, you should always approach a cash-out refi with an immediate purpose for your added funds.
Seeing a cash-out refi in action can help explain how it could work for you.
Let’s say you have a $400,000 home loan and you’ve already paid off $100,000 of the principal with your down payment and monthly payments.
- Total loan amount: $400,000
- Principal left to be paid: $300,000
- Current market value of property: $500,000
- Total home equity: $200,000
Lenders will never fund the full amount of equity in a cash-out refi, so that $200,000 is just a starting point. You’ll probably need to maintain at least 20% of the new loan amount as equity. In this case, that’s $100,000, so we’ll subtract that from the home equity total.
- Available home equity: $100,000
- Estimated closing costs: $5,000
- Cash-out payment: $95,000
You could then use that $95,000 as a down payment option for a new home or even on a vacation house.
Ready to take advantage of your home equity? Apply today to get the benefits a cash-out refinance has to offer.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.
*The OriginPoint home equity line of credit (HELOC) is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw. This product is currently only available in California, Pennsylvania, North Carolina, Florida, Washington, Illinois, Washington DC, and Indiana. The HELOC requires you to pledge your home as collateral, and you could lose your home if you fail to repay. Borrowers must meet minimum lender requirements in order to be eligible for financing. Available for primary, second homes and investment properties only. Dependent on minimum credit score and debt-to-income requirements. Occupancy status, lien position and credit score are all factors to determine your rate and max available loan amount. Not all applicants will be approved. Applicants subject to credit and underwriting approval. Contact OriginPoint for more information and to discuss your individual circumstances. Restrictions Apply.
**Approval may be granted in five minutes but may be subject to verification of income and employment. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing. In addition, funding timelines may be longer if we cannot readily verify that your property is in at least average condition with no adverse external factors with a property condition report and may need to order a desktop appraisal to confirm the value of your property.
***Using funds from a Cash-out Refinance to consolidate debt may result in the debt taking longer to pay off as it will be combined with borrower’s mortgage principle amount and will be paid off over the full loan term. Contact OriginPoint for more information All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. OriginPoint does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by OriginPoint. OriginPoint its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
Your journey home begins here.
OriginPoint's Same-Day Mortgage (aka “FastTrack”) promotion offers qualified customers who provide certain required financial information/documentation to OriginPoint within 8 hours of locking a rate on a mortgage loan the opportunity to receive a loan approval within 1 business day of timely submission of documentation and does not suggest that the borrower will receive funding on the same day as their application submission. For purposes of this offer, documents provided after 1 pm local time or on a weekend or company holiday will be deemed submitted the next business day. OriginPoint cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. OriginPoint reserves the right to revoke this approval at any time if there is a change in your financial condition or credit history which would impair your ability to repay this obligation. Read and understand your Loan Commitment before waiving any mortgage contingencies. Borrower documentation and Intent to Proceed must be signed within 8 business hours of receipt. Not eligible for all loan types or residence types. Minimum down payment requirements apply. Self-employed borrowers and Co-borrowers are not eligible. Not all borrowers will be approved. Borrower's interest rate will depend upon the specific characteristics of borrower's loan transaction, credit profile and other criteria. Eligible borrowers who successfully provide all required documentation within 8 business hours will receive a $250 Closing Cost Credit applied at closing, no cash value, and may not be combined with any other Lender promotions, discounts, or concessions. Not available in all states. Restrictions apply. Visit OriginPoint.com/same-day-mortgage for terms and conditions.
**Eligible borrowers must qualify for a "Clear to Close Loan Commitment" ("CTC”). OriginPoint cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. CTC is subject to certain underwriting conditions, including clear title and no loss of appraisal waiver, amongst others. Not eligible for all loan types or residence types. Minimum down payment requirements apply. Property must be eligible for an Appraisal Waiver and borrower must opt in to AccountChek for automated income and asset verification. Self-employed borrowers and Co-borrowers are not eligible. Not all borrowers will be approved. Restrictions apply.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact OriginPoint for current rates and for more information. All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. OriginPoint LLC fka Guaranteed Rate Affinity, LLC does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by OriginPoint LLC fka Guaranteed Rate Affinity, LLC. OriginPoint LLC fka Guaranteed Rate Affinity, LLC its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action. OriginPoint does not provide tax advice. Please contact your tax adviser for any tax related questions.
