Balance guides

Paying older balances with the equity in a home

Plain notes on what changes when several debts become one line secured by a house.

Words used when balances are combined

Terms that appear when a home line is used to pay off other accounts.

Secured debt

A debt backed by property the lender can claim if payments stop.

Unsecured debt

A debt with no property pledged behind it, such as most card balances.

Payoff amount

The exact sum needed to close an account on a given day, including interest to that date.

Blended rate

A single figure that weighs several rates by the size of each balance.

Lien

The lender's recorded claim on the house while the line is open.

Repayment period

The years after drawing ends during which the balance is paid down.

How to use these guides

Points to keep in mind while reading.

Start with a list

Write down every balance, rate and payment before comparing anything.

Numbers are examples

Any figures here are round illustrations, not offers or quotes.

Your contract decides

The line's own agreement sets its fees, rate and rules.