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Farmers Bank of Kansas City
Home Equity & HELOC Options
You've put time and money into your home. Now explore how the equity you've built could help fund improvements, manage a major expense, or support your next project.
Get My Home Equity QuoteStart with an Estimate
Home Equity Calculator
Estimate your total equity and explore a hypothetical borrowing scenario. Enter your home's estimated value and the balances of all loans secured by your home.
Estimated Total Home Equity
Potential Additional Borrowing in This Scenario
Based on an illustrative 80% combined loan-to-value.
This estimate excludes fees and is not an approved credit limit. Actual availability depends on the lender's property valuation, program limits, existing liens, and your eligibility.
Explore My HELOC OptionsCalculation: estimated home value multiplied by the selected combined loan-to-value, minus existing mortgage balances. Total equity is home value minus existing balances. Your total equity is not necessarily the amount you can borrow.
Understand Your Options
What Is a Home Equity Line of Credit?
A home equity line of credit, or HELOC, is a revolving line of credit secured by your home. During the draw period, you can generally borrow as needed up to your approved limit, subject to the agreement's terms.
A HELOC is typically separate from your first mortgage, allowing you to access equity without replacing that loan. You still take on an additional repayment obligation, so consider how both payments fit your budget.
HELOC: Access Funds as Needed
A revolving credit line may suit projects with expenses spread over time. HELOCs commonly have variable interest rates, so your borrowing costs and payments can change. Review the draw period, repayment period, and minimum payment requirements.
Home Equity Loan: A Lump Sum
A home equity loan generally provides funds upfront with a set repayment term and often a fixed interest rate. It differs from a revolving HELOC. Ask which products are available for your property and financing needs.
Plan with Purpose
Ways Homeowners Use Home Equity
Home Improvements
Plan a kitchen update, essential repairs, or a larger renovation. Match your borrowing to a realistic project budget rather than assuming improvements will increase your home's value by the amount you spend.
Debt Consolidation
Compare the rate, fees, and repayment timeline with your existing debts. Moving unsecured debt into a HELOC makes that debt secured by your home. A lower payment does not necessarily mean a lower total cost.
Major Planned Expenses
Explore financing for a significant expense with a clear repayment plan. Consider alternatives and borrow only what you can comfortably repay.
Projects with Multiple Stages
A credit line can provide flexibility when expenses occur at different times. Review access requirements, any minimum draws, and the costs of keeping the line open.
Compare the Full Cost
What to Review When Comparing HELOC Rates
Look beyond an introductory rate. Review the ongoing APR, whether the rate is variable, the index and margin used to calculate it, and any rate caps or floors. Ask how your payment could change as rates move.
Compare closing costs, annual fees, draw requirements, repayment terms, and any early closure fees. Your available terms may depend on your credit profile, income, existing debts, property details, and combined loan-to-value.
Understand what happens when the draw period ends. Repayment-period payments may be higher, especially if earlier payments covered interest only.
Common Questions
Home Equity and HELOC FAQs
How much equity do I have in my home?
Subtract the outstanding balances of loans secured by your home from its current estimated value. For example, a $400,000 home with $250,000 in mortgage balances has approximately $150,000 in equity. A lender's valuation may differ from your estimate.
How much can I borrow with a HELOC?
Your credit limit depends on the lender's permitted combined loan-to-value, your existing mortgage balances, property valuation, and financial qualifications. The calculator provides hypothetical estimates; it does not determine eligibility or approve a credit line.
Can I keep my current mortgage rate?
A HELOC is typically a separate loan, so opening one generally does not replace your existing first mortgage or change its rate. The HELOC has its own rate, costs, and payment obligation.
What is the difference between a HELOC and cash-out refinancing?
A HELOC typically adds a separate revolving credit line. A cash-out refinance replaces your existing mortgage with a larger loan and provides cash from the proceeds. Compare the costs and payments of both approaches, including the effect of replacing your current mortgage.
Does a HELOC have a fixed interest rate?
HELOCs commonly use variable rates. Some products may offer fixed-rate features, but availability and terms vary. Review the specific offer rather than assuming your rate or payment will remain unchanged.
What should I have ready to request a quote?
Gather an estimated home value, current mortgage balances, the amount you want to borrow, and basic income and property information. Additional documentation may be required as your request moves through the lending process.
Explore What Your Equity Could Make Possible
Take the next step with Farmers Bank of Kansas City. Request a personalized home equity quote based on your property, financing needs, and goals.
Calculator results are illustrative estimates, not a credit decision or commitment to lend. Product availability and terms vary and are subject to credit, collateral, and underwriting approval. Home equity financing is secured by your home; failure to repay could result in foreclosure.
© 2026 Farmers Bank of Kansas City is a branch of Farmers Bank & Trust. All Rights Reserved.
© 2026 Farmers Bank of Kansas City is a branch of Farmers Bank & Trust. All Rights Reserved.