Insights
November 11 2025
If you locked in a mortgage rate in the low 3% range, you’re sitting on something increasingly valuable. With current rates much higher than that, that low rate is saving you serious money every single month.
What’s more, your home has probably appreciated significantly since then, meaning you’ve built substantial equity. And if you want to access that equity for renovations, debt consolidation, or other expenses, the conventional wisdom says to do a cash-out refinance.
But a cash-out refinance would mean giving up that 3% rate.
Let’s look at what a cash-out refi actually means in today’s market. Say you currently have a $300,000 mortgage at 3.25% and want to pull out $50,000 in equity.
With a cash-out refinance, you’d get a new $350,000 loan at today’s rates—let’s say 7%. Your monthly payment would jump by roughly $900. Plus you’d pay $7,000-$10,000 in closing costs.
That’s a steep price to pay for accessing your own equity.
This is where a HELOC comes in. Unlike a refinance that replaces your entire mortgage, a HELOC is a separate line of credit secured by your home. Your original mortgage stays exactly as it is - same rate, same payment, same terms.
The Trovy HELOC, for example, lets you access your home equity while keeping your primary mortgage untouched. You’re essentially adding a second, smaller line of credit rather than replacing the loan you already have.
The structure is pretty straightforward: you get approved for a credit line based on your available equity and other factors, and then you can draw from it as needed. Interest is only charged on the amount you actually use, not the full credit line.
A HELOC particularly makes sense if you’re planning home improvements over time rather than all at once. Maybe you want to renovate your bathroom this year, upgrade the kitchen in a couple of years, pay for a new water heater, and eventually add a deck.
With the Trovy HELOC’s 25-year draw period, you can tackle projects and expenses as it makes sense for your budget and timeline. Draw $30,000 for the bathroom renovation now. Come back in three years and draw another $40,000 for the kitchen. Use your HELOC for large and small expenses inbetween. You’re only paying interest on what you’ve actually borrowed.
Compare that to a cash-out refinance where you take all the money upfront (and start paying interest on it immediately), even if you won’t need it all for years.
The flexibility of a HELOC means you can prioritize based on what matters most to your household right now.
If you’re locked into a low mortgage rate but need access to your home equity, a HELOC offers a way to have both. You keep your existing rate while adding a separate line of credit for the equity you’ve built.
The Trovy HELOC provides you with a line of credit with no requirement to draw funds upfront. You can access it with a card or cash advance, and you’ll only pay interest on what you actually use.
For homeowners who’ve built significant equity but don’t want to give up their low mortgage rate, it’s worth exploring as an alternative to traditional refinancing.
