| Purpose | Prepare for a broker conversation |
| Scope | Education, not a loan approval |
Begin with the decision you are trying to make: do you need a separate source of funds, or do you want to replace the mortgage itself? Your current mortgage, the timing of your expenses, and your ability to manage the proposed payments belong in the same comparison.
What happens to the existing mortgage?
A HELOC generally sits alongside an existing mortgage. A home equity loan also provides separate borrowing, usually as one lump sum. A cash-out refinance replaces the existing mortgage with a new loan. The CFPB explains the distinction between a line and a home equity loan.
Compare two household plans
For a separate-lien option, write down the existing mortgage payment and the proposed additional payment. For a refinance, write down the proposed replacement payment and term. Then compare the full borrowing cost over the time you expect to keep the financing. A smaller monthly payment by itself does not settle the question.
A staged renovation creates a different cash need from one known bill. List the expected payments to contractors and when they fall due, rather than requesting the largest possible amount by default. Ask how a lender would handle a required initial draw or a change in your project schedule.
Questions to put beside each proposal
Ask which costs are due upfront, which are financed, whether there are ongoing fees, and what happens if you repay or close the account early. Record whether payments or rates can change. Ask for the repayment schedule and assumptions in writing so that you are comparing equivalent information.
If the purpose is paying other debts, compare the proposed plan with alternatives that do not secure those debts against your home. Your house is collateral for home equity borrowing. The CFPB home equity loan guidance discusses that risk and credit-counseling alternatives.
An illustrative planning example
A homeowner is planning a kitchen project in three stages and is unsure of the final cost. Another has a single completed project with a known bill. Neither situation proves that one loan is suitable. It tells the broker what to compare: timing of access, total cost, payment predictability, and the existing mortgage. These are hypothetical situations, not completed Stonehaven transactions.
Bring your figures to the conversation
Use your estimated home value, remaining mortgage balance, and requested amount to request a HELOC review. Read the preparation checklist before the call, or explore the cash-out refinance page if replacing the mortgage is part of your goal. Stonehaven arranges financing through third-party lenders; final eligibility and terms depend on their review.