A HELOC is a line of credit against the equity in your home that you draw on as you need it, at a variable rate; a home equity loan is one lump sum at closing, repaid in equal monthly payments at a rate that does not change. Both leave your first mortgage as it is. We offer both to homeowners in Maryland, as a direct mortgage lender based in New Jersey.
See what you may be eligible for, then talk it through.
Fidelity Residential · NMLS #103098 · Equal Housing Lender
Fidelity Residential is a direct mortgage lender based in New Jersey, licensed in 40 states and the District of Columbia, including Maryland. We offer home equity lines of credit and fixed-rate home equity loans on homes in Maryland.
You work with us by phone, email and online. Borrowing against your home starts with a choice between a line you draw on and a loan paid out at once. A licensed loan officer can compare the two for what you have in mind, and tell you early what the programs ask for.
About 67.6 percent of Maryland’s occupied homes are lived in by their owners, above the national 65.2 percent: about 1,598,000 households. Maryland’s median home value, $419,900, is above the national $332,700.
Equity is what your home is worth less what is owed on it, and Census figures do not show it. A line or a home equity loan is sized on your own home: its value now, the balance of your first mortgage, your credit and your income. The calculators below start from those figures.
Self-employed? About 8.7 in every 100 employed workers in Maryland work for themselves (national: 10.0), and we offer bank statement HELOCs. See bank statement loans in Maryland.
Source: U.S. Census Bureau, American Community Survey 5-year estimates, 2020-2024 (tables B25003, B25077 and B24080). Estimates, not counts.
Both are secured by your home and sit behind your first mortgage, which stays exactly as it is.
A revolving line, with a limit set from the equity in your home. During the draw period you draw what you need, repay and draw again, and the required payment covers only the interest on what you have drawn. Then a repayment period begins. The rate is variable and moves with a published index, so the payment can change. Most programs ask for a large first draw at closing.
The HELOC guide and calculatorThe whole amount at closing, repaid in equal monthly payments at a rate that does not change, over a term set at the start. There is no draw period and no revolving balance. The cash can be used for any purpose; programs ask for a short explanation of what it is for.
The home equity loan guide and calculatorIf you would rather replace your first mortgage with a larger one, a cash-out refinance does that instead.
Homeowners with equity who want to borrow against it without giving up the mortgage they have.
Homeowners in Maryland whose first mortgage has terms they want to keep, and who would rather add a loan behind it than replace it.
A project paid in stages, such as a renovation paid as the work is done, fits a line you draw on as you go. A project with a fixed price, or debts to combine, fits one lump sum with a set payment.
A line of credit or a home equity loan can be documented the usual way, with pay stubs, W-2s or tax returns, or, if you are self-employed, with bank statements. Some home equity loan programs also accept 1099s, a prepared profit-and-loss statement or verified assets. See bank statement loans in Maryland.
Each figure below is one program’s own limit, and they do not all apply to the same line.
The figures above are as of 13 October 2026 and are due for review by 13 November 2026. Each is one program’s own limit; the starting credit score, the largest line and the highest share of value do not come together in one line. They are program limits, not an offer or a loan decision; programs change their terms without notice, and your line depends on credit, income, the home and underwriting review.
A worked example, in words. Say you own a home in Maryland with a first mortgage you want to keep, and you plan a renovation paid in stages.
If you would rather have one sum at closing and a payment that does not change, the same steps set the amount of a home equity loan.
Want the detail? Our HELOC guide and home equity loan guide cover what the programs ask for, and the HELOC calculator and home equity loan calculator each work the programs out for your answers and show what you may be eligible for. Each is an estimate, not an offer.
Yes. Fidelity Residential is a dba of PFN Lending Group, Inc. (NMLS #103098), a direct mortgage lender based in New Jersey and licensed in 40 states and the District of Columbia, including Maryland. You can check the licences on NMLS Consumer Access (opens in a new tab).
A HELOC suits costs that come in stages: you draw what you need, pay interest only on what you have drawn during the draw period, and the rate is variable. A home equity loan suits a known cost: one lump sum at closing, with equal monthly payments at a rate that does not change. A loan officer can compare both for your plans.
No. A HELOC or a home equity loan sits behind your existing first mortgage, which stays exactly as it is. If you own the home outright, a line can be in first position.
Yes. Both can be secured by a second home. Some programs also accept a rental property, as a business-purpose loan; a loan officer can tell you which fit the property.
Yes. Either can be opened on its own after you have owned the home, or at the same closing as a new first mortgage on a purchase or refinance. Some programs need no ownership seasoning, so you can also borrow soon after buying.
Yes. We offer bank statement HELOCs for self-employed borrowers, and some home equity loan programs also accept bank statements, 1099s, a prepared profit-and-loss statement or verified assets.
It comes from your equity. The lender looks at what the home is worth, what is owed on it, your credit and your income, within each program’s limit on the share of the home’s value that all loans against it may reach. The HELOC calculator works the programs out for your answers and shows what you may be eligible for; it is an estimate, not an offer.
Not the whole line, but most programs require a large first draw at closing, often three-quarters of the line. After that you draw as you need, within the draw period, and pay interest only on the balance.
You can no longer draw, and the balance is repaid with interest over the remaining years, so the payment changes again. Plan for that later payment, not only the interest-only one.
No prepayment penalty at the programs we read. Fees exist on some lines; your closing documents list them before you commit.
Not always. Smaller lines and loans may need only an automated valuation, with a property inspection on a home equity loan. Larger ones, lines in first position and lines opened at the same closing as a new first mortgage get a full appraisal.
A home equity loan can be used for any purpose; programs ask for a short explanation of what the cash is for. A line suits costs that come in stages, such as a renovation paid as the work is done; a lump sum suits a known cost, such as a project with a fixed price or debts to combine.
The IRS says interest on home equity loans and lines of credit is deductible only if the money is used to buy, build or substantially improve the home that secures the loan. Whether that applies to you is a question for your tax adviser.
A HELOC keeps your first mortgage as it is and adds a line behind it. A cash-out refinance replaces your mortgage with one new, larger loan and pays you the difference at closing. If your first mortgage has terms you want to keep, a line or a home equity loan leaves it in place. HELOC or cash-out refinance, compared.
Sources: Internal Revenue Service, Publication 936, Home Mortgage Interest Deduction (opens in a new tab); Consumer Financial Protection Bureau, What is a home equity line of credit (HELOC)? (opens in a new tab). Facts are stated in our own words.
Get a quote online, or call and compare a line of credit with a home equity loan with a licensed loan officer.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.