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Home equity in Metro Detroit

Get a HELOC in Michigan

A home equity line of credit lets you borrow against your home as you need it, while your first mortgage stays the same. Learn how it works and the risks, then get matched with one local lender.

Start My HELOC Match HELOC vs home equity loan
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  • No credit check to get matched
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  • Detroit and six counties

Rebuild Detroit is a free directory and matching service. It is not a lender, does not make loans or credit decisions and does not quote rates. Loan terms, rates and approval come only from the lender you choose, who must give you a Loan Estimate after you apply. Check any lender or loan officer on NMLS Consumer Access.

How it works

How a HELOC works

  1. 1

    You get a credit line

    A HELOC is an open-end line of credit that lets you borrow repeatedly against your home equity, up to a set limit.

  2. 2

    Draw period

    During the draw period, often around 10 years, you can borrow what you need, repay it and borrow again. Payments change with your balance.

  3. 3

    Adjustable rate

    Most HELOCs have adjustable rates, so your payment can change from month to month. Some let you convert part of the balance to a fixed rate, usually at a higher rate.

  4. 4

    Repayment period

    After the draw period, you stop borrowing and repay, often over 10 to 20 years. The CFPB warns that monthly payments are often significantly higher in this phase.

Compare

HELOC vs home equity loan vs cash-out refinance

HELOCHome equity loanCash-out refinance
How you get moneyDraw as needed, up to a limitOne lump sumLump sum at closing
RateUsually adjustableFixed or adjustableDepends on the new loan
Your first mortgageStays as isStays as isReplaced with a new, larger loan
Best forProjects paid in stages, ongoing costsOne known cost, predictable paymentsWhen you also want a new rate or term
LendersHELOC lendersHome equity loansCash-out refinance
Plain English

A HELOC is a second mortgage

If you already have a mortgage, the CFPB notes that both a HELOC and a home equity loan are second mortgages. That means a second monthly payment on top of your first loan. Lenders look at your credit, your income and how much equity you have, meaning your home's value minus what you owe.

Common uses in Metro Detroit include a roof replacement, a new furnace, foundation repair, a kitchen remodel or finishing a basement. Get written estimates first so you borrow only what you need. Our cost guide helps you plan.

Know the risks

What to watch out for

  • Your home is the collateral. The CFPB warns that if you fall behind or cannot repay on schedule, you could lose your home.
  • Payments can rise. An adjustable rate and the switch from draw to repayment can both increase your payment. Ask what the payment would be at the end of the draw period.
  • The line can be frozen or cut. If home values drop a lot or your finances change, the lender may freeze or reduce your line.
  • Fees and minimums. Ask about annual fees, early closure fees and minimum draw requirements before you sign.
  • Borrow for lasting value. Using home equity for short-term spending puts your home at risk for things that will not last.
Be ready

What lenders usually ask for

  • Your current mortgage statement to show what you owe.
  • Proof of income such as pay stubs, W-2s or tax returns.
  • Homeowners insurance and your property tax bill.
  • An appraisal or value estimate. Some lenders order a full appraisal.
  • Contractor estimates if the money is for a project, so you borrow the right amount.
Questions

HELOCs in Michigan: FAQ

A home equity line of credit is an open-end line of credit that lets you borrow repeatedly against your home equity, usually at an adjustable rate.
A home equity loan pays you one lump sum, at a fixed or adjustable rate. A HELOC lets you draw money multiple times up to a limit and usually has an adjustable rate.
Often around 10 years, followed by a repayment period that can run 10 to 20 years. Check the exact terms in your agreement.
Yes. The CFPB notes a lender may freeze or reduce your line if your home's value drops significantly or your financial situation changes.
No. The Rebuild Detroit form asks for a self-reported range and does not pull credit. A lender checks credit only if you apply.

Put your home equity to work, carefully

Tell us what you owe and what you need. One Metro Detroit lender follows up, free and with no obligation.

Start My HELOC Match

Sources

Updated September 2026. Rules and procedures change; confirm with the responsible office before a decision.

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