To get equity out of your home without refinancing, use a home equity line of credit (HELOC), a home equity loan or a home equity agreement. Each of them sits behind your current mortgage and leaves its rate and payment untouched. A cash-out refinance does the opposite, because it pays off your mortgage and replaces it with a new, larger loan at today’s rate.
That gap is the whole point if your mortgage rate sits below what lenders charge today. Freddie Mac’s weekly survey put the average 30-year fixed mortgage rate at 7.28% as of October 1, 2026, so refinancing a cheaper loan to reach your equity means paying that kind of rate on money you already borrowed for less.
The three alternatives aren’t interchangeable. A HELOC or home equity loan adds a second monthly payment and expects steady income and good credit. A home equity agreement has no monthly payment and lower credit minimums, but you settle it later with a share of what your home is worth, which could cost more than a loan if the home gains value. Below you’ll find how each one works, what it costs and who it fits, using figures published by regulators and the companies themselves as of October 6, 2026.
The options at a glance
Three of these four routes keep your first mortgage. The fourth is in the table so you can see what you’d be giving up.
| Option | First mortgage | Monthly payment | Typical credit needed | How the cost works | How long it takes | Best for |
|---|---|---|---|---|---|---|
| HELOC | Stays as it is | Yes, on what you borrow | From 600 at Figure, in most states | Interest, typically at a variable rate, along with lender fees | Funding in as few as 5 days at Figure for qualifying loans | Steady income and good credit |
| Home equity loan | Stays as it is | Yes, a second payment, usually a fixed one | Set by each lender | Interest, typically at a fixed rate, along with lender fees | Varies by lender | One lump sum and a payment that never changes |
| Home equity agreement | Stays as it is | None to the company | 500 at Unlock and Splitero, 575 FICO at Hometap | A share of the home’s future value at settlement, plus fees taken out of your proceeds | Roughly 20 to 60 days by company estimates | No room for a monthly payment, or credit below 600 |
| Cash-out refinance | Replaced by a new, larger loan | Yes, one new mortgage payment | Set by each lender | A new rate on your entire balance, plus closing costs | Varies by lender | A current rate that is at or above today’s rates |
The Consumer Financial Protection Bureau is the source for how each product works. The named figures come from Figure, Unlock, Splitero and Hometap as of October 6, 2026. They’re published minimums and best cases, so your own terms will differ.
Two rows need a footnote. A traditional HELOC is a revolving line you draw on as needed, usually at a variable rate, with a draw period that could last 10 years, according to the CFPB. Some newer HELOCs, including Figure’s, are drawn in full at closing, so they work more like a loan that you may redraw as you pay it down. Achieve’s fixed-rate HELOC is drawn the same way, and Upstart’s requires you to draw at least 80% of the line when you open it.
Home equity agreement is the plain name for a product the companies call a home equity investment (HEI) or a home equity agreement (HEA), and that the CFPB calls a home equity contract. Every version is the same swap: cash now for a share of the home’s value later.
Why it matters to keep your current mortgage
A cash-out refinance doesn’t add a loan next to your mortgage. As the CFPB’s guide to using home equity describes it, you take out a larger mortgage, use part of it to pay off the one you have and take the rest in cash, and because the new loan replaces the old one, your interest rate and other terms change. Three things follow.
- The new rate applies to everything you owe. You might only want $50,000, but the rate changes on the full balance, including the part you already had at a lower rate.
- Closing costs are figured on the whole loan. Freddie Mac tells homeowners to expect refinancing costs of 3% to 6% of the loan principal. With a second lien or an agreement, fees are charged on the new money only.
- The payoff clock could restart. The CFPB notes that a cash-out refinance may stretch the time it takes to pay off your mortgage, and that these loans are usually paid back over 30 years.
Illustration: Say you owe $300,000 at 3.5% and want $50,000 in cash. A cash-out refinance turns that into one $350,000 loan. At the 7.28% average Freddie Mac reported for October 1, 2026, the $300,000 you already owed would accrue about $21,840 of interest in a year, where it used to accrue about $10,500. Leave the mortgage alone, and only the new $50,000 is priced at today’s rates. This is simple interest on the starting balance, shown to make the mechanics visible. The 3.5% rate and the dollar amounts are assumptions, and the rate you’d be offered depends on your credit and your lender.
None of this makes the alternatives cheap. Figure lists HELOC APRs from 7.35% to 14.85%, and a home equity agreement could cost more in total if your home appreciates. What you protect by not refinancing is the rate on the balance you already carry.
If your mortgage rate is already at or above today’s rates, the logic flips, and a single new loan through a cash-out refinance could be the simpler choice. If you’re still deciding whether to tap your equity at all, begin with our home equity guides.
Which option suits you
Two questions sort most homeowners. Could your budget carry a second monthly payment? Would a lender approve you on income and credit? Your answers point down one of two paths.
More: HEI vs HELOC, compared on cost, who qualifies and fit
If you have steady income and good credit: a HELOC
If you could document your income and your credit is in good shape, a HELOC or home equity loan is usually the cheaper way to get cash and keep your mortgage. You pay interest on what you borrow, and nothing you owe depends on what your home is worth later. The CFPB’s comparison in the cost section below shows the gap.
Figure is the HELOC we feature for this reader because its line could sit behind the mortgage you already have, and because its numbers are published.
- $15,000 to $750,000, either as a first lien or as a second lien behind your current mortgage
- APRs from 7.35% to 14.85% as of October 6, 2026, and both fixed and variable rate options
- Funding in as few as 5 days on qualifying loans under $400,000
- Terms of 10, 15, 20 or 30 years, and no prepayment penalty
- The minimum credit score is 600 in most states, according to Figure’s FAQ
- Offered in 48 states and Washington, D.C.
The catch: Figure’s line is drawn in full at closing, minus an origination fee of up to 4.99% of the initial draw, so you pay interest on the whole amount from day one, the way you would with a home equity loan. Approval also depends on verified income and employment, and Figure’s FAQ says applicants must be employed, self-employed or retired. Hawaii and New York aren’t on its list of states, and the minimum is higher in Alaska ($25,001) and Texas ($35,000). If all you want is a standby line you might never touch, a traditional HELOC from a bank or credit union suits that better.
See your rate at Figure. Figure says checking your rate uses a soft credit pull that won’t affect your credit score, and that submitting an application leads to a hard pull.
If a monthly payment won’t fit, or your credit is lower: a home equity agreement
A home equity agreement gives you a lump sum now in exchange for a share of your home’s future value. You make no monthly payment to the company. You keep paying your mortgage, property taxes and insurance, and you settle the agreement in a single payment when you sell, refinance or reach the end of the term.
That’s the appeal for a homeowner guarding a low-rate mortgage on a tight budget, or one whose credit score rules out a HELOC. Published credit minimums start at 500, and the companies below set no income requirement on a primary home. The trade is cost. The CFPB describes these contracts as expensive compared with other home-secured financing, and what you settle for rises with your home’s value.
For a reader keeping a low-rate mortgage, we lead with Splitero, because its term is tied to that mortgage: it runs as long as your senior mortgage, from 10 to 30 years. Unlock is the pick for smaller amounts and a 500 minimum credit score in 26 states. Hometap could suit homeowners with a FICO score of 575 or higher in one of its 27 states.
The term follows your senior mortgage, from 10 to 30 years. There’s a 500 minimum credit score and no income requirement.
Get an Estimate at Splitero
$15,000 to $500,000 on a term of up to 10 years, with a 500 minimum credit score and partial buyouts along the way.
Get an Estimate at Unlock
Hometap could invest $15,000 to $600,000 for a 10-year term if your home has at least 25% equity, among other qualifying criteria.
Get an Estimate at Hometap| Company | The catch |
|---|---|
| Splitero | It serves eligible areas of 17 states only. The minimum is $50,000 ($75,000 in Wyoming), and the most is 25% of your home’s value or $600,000. Expect a 4.99% origination fee and about $1,000 in third-party closing costs to come out of your proceeds. |
| Unlock | The term is up to 10 years. You need at least 30% home equity and a home worth $175,000 or more, and a 4.9% origination fee is taken out at closing. Unlock won’t sit lower than second lien position, so an existing second mortgage or HELOC would need to be paid off, and Unlock may require your proceeds to go toward that. |
| Hometap | The effective period is 10 years, so you’d need a plan to settle the Investment by then. Hometap’s fee is 4.5% of the Investment amount, up to $20,000, and it is deducted from your investment proceeds along with third-party costs. |
All three share the bigger catch: what you settle for at the end. The cost section below covers it, and our Hometap review goes through one company’s settlement math year by year.
More: See every home equity agreement company side by side
How qualifying works if you keep your mortgage
Every option here looks at the same things (your credit, your income, your equity and where the home is), but each weighs them differently. A lender approves a HELOC or home equity loan mainly on credit, income and existing debts. Agreement companies lean on the home more than on your paycheck.
| Requirement | Figure HELOC | Unlock | Splitero | Hometap |
|---|---|---|---|---|
| Minimum credit score | 600 in most states, and 660 for investment properties | 500 | 500 | 575 FICO |
| Income | Verified income and employment | No income requirement | No income or employment requirement | No income or employment requirements |
| Equity | It depends on credit, lien position and how the home is used | At least 30% home equity | More than 25% equity | At least 25% equity in the home |
| Amount | $15,000 to $750,000 | $15,000 to $500,000 | $50,000 to $600,000, up to 25% of the home’s value | $15,000 to $600,000, up to 27% of the home’s value |
| Where | 48 states and Washington, D.C. | 26 states | Eligible areas of 17 states | 27 states |
These are the published requirements as of October 6, 2026. Meeting them doesn’t mean you’ll be approved, and each company applies further criteria.
Credit. Figure‘s FAQ sets its minimum at 600 in most states, though the rate tool on its HELOC page starts at 640, so expect the best pricing well above the floor. Figure also suggests keeping your debt-to-income ratio below 50%. Unlock and Splitero both publish a 500 minimum. Whichever route you take, you need to be in good standing on the mortgage you’re keeping. Unlock, for example, excludes homeowners with more than one 90-day mortgage delinquency in the past 24 months. If your score is the main obstacle, our guide to getting a home equity loan with bad credit goes through the options by credit score.
Income. Figure verifies income through linked bank accounts, tax returns or pay stubs. Splitero says it won’t ask for documentation about employment or income. Unlock has no income requirement, though it asks to verify rental income when the home is an investment property.
Property type. None of the four is limited to a primary home. Figure lends on second and investment properties, Unlock invests in second homes and rentals at pricing that is typically higher for a rental, and Splitero says the home doesn’t have to be your primary residence. Hometap includes vacation and rental properties among the property types it invests in.
Where each company serves
| Company | States, as of October 6, 2026 |
|---|---|
| Figure HELOC | 48 states and Washington, D.C. Hawaii and New York aren’t on its list. |
| Unlock (26) | Alabama, Arizona, California, Florida, Hawaii, Idaho, Indiana, Kentucky, Michigan, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Vermont, Virginia, Wisconsin, Wyoming |
| Splitero (17) | Eligible areas of Arizona, California, Florida, Idaho, Missouri, Montana, Nevada, New Jersey, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, Wyoming |
| Hometap (27) | Alabama, Arizona, California, Delaware, Florida, Georgia, Idaho, Indiana, Kentucky, Michigan, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Wisconsin |
State matters most with agreements. Alaska, Maine, Massachusetts, Mississippi, North Dakota, South Dakota, Texas and West Virginia appear on none of the three agreement lists above. In those states, the practical way to get cash and keep your mortgage is a HELOC or a home equity loan, and Figure includes all eight among the states where its HELOC is available.
Find your HELOC rate at Figure, which Figure says won’t affect your credit score. For a home equity agreement, get an estimate from Unlock or a cash estimate from Splitero, both of which start with a soft inquiry.
What each option will cost you
The pricing models differ enough that the only fair comparison is total dollars at the point you expect to be done, whether that means paying off a loan or settling an agreement.
Cost of a HELOC or home equity loan
You pay interest every month, plus fees at the start. Figure‘s published terms show the shape of it: APRs from 7.35% to 14.85%, with the lowest APRs reserved for the most qualified applicants who choose a 10-year term, and an origination fee of up to 4.99% of the initial draw. There’s no prepayment penalty. A home equity loan from a bank or credit union works the same way, usually at a fixed rate, with its own fee schedule.
Cost of a home equity agreement
Nothing is due monthly. The cost arrives twice: a fee deducted from your proceeds at the start, and the company’s share of your home’s value when you settle.
| Company | Fee taken from your proceeds | Settlement amount | Published cap |
|---|---|---|---|
| Unlock | 4.9% of the investment, along with third-party costs | Your home’s ending value times your Unlock percentage | 19.9% a year (Annualized Cost Limit), or less if state law requires |
| Splitero | 4.99%, along with about $1,000 in third-party closing costs | Your split percentage of the home’s value when you repurchase | 17.99% a year, compounded monthly (the Safety Cap) |
| Hometap | 4.5% of the Investment amount, up to $20,000, along with third-party costs | An agreed percentage of your home’s value when you settle (the Hometap Share) | Yes, the Hometap Cap |
Taken from each company’s pricing and FAQ pages as of October 6, 2026.
Splitero publishes a worked example. A homeowner receives $100,000, which is 10% of a $1,000,000 home. Five years later the home is worth $1,200,000, and the repurchase amount is $240,000, a 20% split percentage, or the Safety Cap if that is lower. In that example, the homeowner settles for $140,000 more than the cash received, before fees.
To put the scale against a loan, the CFPB modeled a hypothetical $50,000 contract on a $500,000 home, with a 20% share and a 20% annual cap. After 10 years the settlement ranged from $94,074 to $215,892, depending on what home prices did. The same $50,000 as an interest-only HELOC at 9% cost $375 a month and $95,000 in total over 10 years, including paying back the $50,000. The CFPB’s example doesn’t use any one company’s terms.
The honest summary: an agreement costs nothing each month and could cost the most in total. It fits when the monthly payment is the real obstacle and you have a realistic plan for settling, usually a sale or a later refinance. The whole amount comes due in one payment at the end of the term.
Find your HELOC rate at Figure, then get an estimate from Unlock or a cash estimate from Splitero, and compare the totals at the year you expect to be done.
What changes once you add a second lien
Leaving your first mortgage in place doesn’t mean nothing changes. Whatever you add is recorded as a lien behind it. That affects how much you could take out, what happens when you sell and how easy it is to refinance the first mortgage later.
How much total financing your home could support
Lenders call this combined loan-to-value, or CLTV: every loan secured by the home, including the new one, divided by the home’s value. In Figure’s example, a $200,000 mortgage plus a $50,000 HELOC on a $400,000 home is a CLTV of 62.5%. Each company states its ceiling differently.
| Company | Published limit |
|---|---|
| Figure | The maximum CLTV depends on your credit score, lien position and whether the home is your primary residence. Its borrowing calculator rests on 80% of your home’s current value. |
| Unlock | You need at least 30% home equity to qualify. A Total Home Finance Limit in the agreement caps all financing secured by the home, typically at 75% to 80% for a second home or rental. |
| Splitero | At origination, the investment plus your loan balance can’t exceed 75% of the home’s value. The investment itself tops out at 25% of the value or $600,000. |
| Hometap | At least 25% equity in your home, and an Investment of up to 27% of your home’s value is possible, among other qualifying criteria. |
Rules on lien position
Each company also decides where in line it’s willing to stand. Figure offers both first liens and subordinate (second) liens. Unlock has to hold second lien position or better. Splitero records its interest junior to your mortgage, or in first position only when there’s no mortgage.
The rules could differ by state. In Missouri, Splitero invests only in second or third lien position, so it’s available there only to homeowners who have a mortgage, which is the situation this page covers. Check the rule for your state before you apply.
If you sell the home
The sale settles everything secured by the home. The escrow or title company pays off your first mortgage and then the second lien or the agreement, and you keep what’s left after selling costs. A HELOC or home equity loan is paid off at its remaining balance. An agreement is settled for the company’s share of the sale price. Unlock, for instance, says the escrow company pays the Unlock Share out of the sale proceeds and releases its lien.
Tell the company before you list. Unlock asks to be told as soon as you decide to sell. Hometap asks you to inform it beforehand if you plan to sell your home, rent it out, add another lien or refinance your traditional mortgage.
If you refinance the first mortgage later
A new first mortgage has to be first in line, so whoever holds the lien behind it must agree to stay behind (called subordination) or be paid off. This is where a second lien could get in the way.
Unlock says it will typically subordinate to a new loan within its Total Home Finance Limit and may charge an administration fee. It won’t subordinate to a reverse mortgage, a shared appreciation loan or a loan with negative amortization, and it can’t guarantee that a mortgage lender will agree to lend on a home with an Unlock Agreement. Splitero says it doesn’t require payoff when you refinance and may subordinate in certain cases, such as a rate and term refinance with no cash out, but that some lenders may require it to be paid off.
Among the complaints the CFPB has received about home equity contracts is difficulty refinancing a first mortgage. If you take a HELOC instead, ask the lender for its subordination policy in writing before you close.
Does your current mortgage lender get involved?
Not in the application. Your current lender or servicer isn’t a party to a HELOC, a home equity loan or an agreement, and your rate, payment and payoff date stay the same. The new lender or company will see the mortgage on your title and credit report, and may ask for a recent statement. Unlock includes one among its required documents.
Federal law backs this up. Under 12 U.S.C. 1701j-3(d), a lender may not use a due-on-sale clause to call a loan on a home with fewer than five units just because the owner adds a lien behind it that does not transfer rights of occupancy.
What does change is the price of falling behind. Under Unlock’s agreement, missing payments on your mortgage, property taxes or insurance counts as a default, and the CFPB notes that a default on a senior lien could trigger repayment of a home equity contract. With a HELOC or home equity loan, two lenders could foreclose.
As you find your HELOC rate at Figure, or get an estimate from Unlock or a cash estimate from Splitero, ask how the company handles lien position and a future refinance before you sign.
Choosing between them
Find your situation in the left column. If more than one row fits, price both.
| If this is you | Look at |
|---|---|
| You have steady income you could document, and credit around 600 or higher | A HELOC or home equity loan. Figure is the HELOC featured on this page. |
| A second monthly payment wouldn’t fit your budget | A home equity agreement. |
| Your credit score falls between 500 and 599 | Unlock or Splitero, both of which publish a 500 minimum. |
| You plan to hold the home and the mortgage for more than 10 years | Splitero, whose term follows your senior mortgage, up to 30 years, or a HELOC with a long term. |
| Your mortgage rate already sits at or above today’s rates | Price a cash-out refinance as well. |
Steps for getting equity out of your home without refinancing
- Pull your numbers. Find your mortgage balance, rate and payment on your latest statement, and settle on a realistic home value. A home equity calculator can estimate how much you could get.
- Answer the payment question. Work out whether your budget could carry a second monthly payment for years. If it couldn’t, skip to agreements.
- Check your credit score and your state. Compare both with the minimums and state lists above before you fill out anything.
- Get numbers without a hard inquiry. Figure‘s rate check, Unlock‘s application and Splitero‘s pre-qualification each use a soft inquiry. Figure and Splitero run a hard check later, once you submit a full application.
- Compare total cost at your finish line. For a HELOC or loan, add the fee to the interest you’d pay by the time you expect to pay it off. For an agreement, run the company’s calculator at the year you expect to sell or settle, using more than one appreciation rate.
- Ask about exits before you sign. What happens if you sell early, and will the company subordinate if you refinance your first mortgage?
- Close, then keep paying the first mortgage. Fees come out of your proceeds, and your original mortgage carries on exactly as it did before.
Common questions
Yes. A HELOC, a home equity loan and a home equity agreement each give you cash and leave your first mortgage, its rate and its payment in place. A HELOC or loan adds a second monthly payment. Figure sets a minimum credit score of 600 in most states for its HELOC. An agreement has no monthly payment and is settled later for a share of your home’s value.
The answer depends on your credit, your income and how long you need the money. If you qualify, a HELOC or home equity loan usually costs less over time than a home equity agreement, because you pay interest only on what you borrow. In one Consumer Financial Protection Bureau example, a $50,000 interest-only HELOC at 9% cost $95,000 in total over 10 years, while a $50,000 home equity contract settled for $94,074 to $215,892. A cash-out refinance is mainly worth pricing when your current mortgage rate is at or above today’s rates.
Yes. If you have a mortgage, a home equity loan is a second mortgage with its own separate monthly payment, usually at a fixed rate. You receive the money as a lump sum, and your first mortgage doesn’t change.
No. Your first mortgage keeps its rate, payment and payoff date, and the new product is recorded as a lien behind it. You do have to stay current on the first mortgage, and you may need the second lienholder’s cooperation if you refinance later.
It depends on the product. Figure‘s FAQ gives a minimum credit score of 600 in most states for its HELOC. Among home equity agreement companies, Unlock and Splitero each publish a minimum of 500. Hometap‘s minimum FICO score is 575.
Often, but the company holding the second lien has to agree to remain in second position or be paid off. Unlock says it will typically subordinate to a new loan within its limits and may charge an administration fee. Splitero says it may subordinate in certain cases, like a rate and term refinance with no cash out. Ask before you sign.
Not from the three agreement companies on this page. Texas, Massachusetts, Alaska, Maine, Mississippi, North Dakota, South Dakota and West Virginia are missing from all three state lists. In those states, a HELOC or home equity loan is the practical way to get cash and keep your first mortgage. Figure includes all eight among the states where its HELOC is available.
Sources
- Consumer Financial Protection Bureau: Using home equity to meet financial needs
- Consumer Financial Protection Bureau: What is a home equity line of credit (HELOC)?
- Consumer Financial Protection Bureau: Issue Spotlight, Home Equity Contracts: Market Overview (January 15, 2025)
- Freddie Mac: Primary Mortgage Market Survey, weekly averages as of October 1, 2026
- Freddie Mac: Understanding the costs of refinancing
- 12 U.S.C. 1701j-3(d), limits on due-on-sale clauses
- Figure: Home Equity Line page and HELOC FAQs (figure.com)
- Unlock: FAQs and What It Costs (unlock.com)
- Splitero: How It Works, Eligibility, Pricing and FAQs (splitero.com)
- Hometap: FAQs and How It Works (hometap.com)
Take the next step.
Two ways ahead, depending on whether a monthly payment fits your budget.
$15,000 to $750,000. The minimum credit score is 600 in most states. Funding in as few as 5 days on qualifying loans under $400,000.
Minimum credit score 500, with no income or employment requirement. Terms run from 10 to 30 years.
Keep reading
RoundupTop Home Equity Agreement Companies ComparedCompare costs, minimum credit scores and state coverage for each company.
ComparisonHEI vs HELOC: Which One Fits YouHow the monthly payment, total cost and qualifying rules compare.
GuideGetting a Home Equity Loan With Bad CreditOptions at each credit score and what each one costs.
Terms, pricing and availability change. Check the current terms on the company’s site before you apply.