Smart Ways to Use Your Home Equity in California’s Central Valley

Owning a home is one of the biggest accomplishments in life. For many Central Valley homeowners, it’s also a valuable financial resource. Your home equity—the difference between your home’s current market value and the balance on your mortgage—can be accessed responsibly through different programs without giving up the low interest rate you may already have on your first mortgage.

Three common options available in California include:

• Home Equity Loans (HELOANs)
• Home Equity Lines of Credit (HELOCs)
• Reverse Mortgage Seconds (for homeowners 55+)

Each option has its own features, benefits, and eligibility guidelines.

Home Equity Loan (HELOAN)

A HELOAN is a fixed-rate second mortgage that provides a lump sum of cash. Payments remain the same each month, which makes it easier to budget.

Potential Benefits:

• Receive a one-time lump sum for large expenses
• Fixed monthly payments at a fixed rate
• Can be used for debt consolidation, home repairs, or education costs
• Keep your current first mortgage rate unchanged
• Available for primary residences, second homes, and investment properties

Home Equity Line of Credit (HELOC)

A HELOC provides flexible access to funds, similar to a credit card. You can borrow only what you need, when you need it, and repay over time.

Potential Benefits:

• Flexible withdrawals for ongoing projects or expenses
• Pay interest only on the amount you use
• Useful for renovations, medical expenses, or financial planning
• Your first mortgage remains in place
• Available for primary residences, second home, and investment properties

Reverse Mortgage Second

Available to homeowners age 55 and older, a Reverse Mortgage Second allows you to access equity without monthly mortgage payments on the reverse loan. This product does not replace your first mortgage—you keep your current terms on the first loan while adding a reverse second.

Potential Benefits:

• No required monthly payments on the reverse second
• Maintain your existing low-rate first mortgage
• Funds are taken as a lump sum
• Can support retirement planning, healthcare costs, or other needs

Borrowers must continue to pay property taxes, homeowner’s insurance, and maintain the property.

Why Central Valley Homeowners Consider These Options

With rising property values in Fresno, Clovis, Visalia, Bakersfield, Modesto, and surrounding communities, more homeowners are looking for ways to responsibly use equity for:

• Home improvements that add value
• Consolidating higher-interest debts
• Covering medical or long-term care needs
• Supporting education or family goals
• Creating financial flexibility in retirement

Next Steps

Choosing between a HELOAN, HELOC, or Reverse Mortgage Second depends on your financial situation and long-term goals. Speaking with a licensed loan officer like me can help you understand which option may fit best.

📞 Contact Robert Clark today
Mortgage Loan Officer | Firestone Financial Group
Phone: 209-227-7745 or 559-476-9279
Website: robertclarkloans.com
Email: rbrtclark53@gmail.com

NMLS #357788 | NMLS #301522

Compliance & Disclosure

Firestone Financial Group is an Equal Housing Opportunity Lender. All programs are subject to credit approval, income and asset verification, and property requirements. This is not a commitment to lend. Terms, rates, and conditions may vary and are subject to change without notice. Reverse Mortgage Second products are available to qualified homeowners age 55 or older. Borrowers must continue to pay property taxes, insurance, and maintain the home. Not all applicants will qualify. Contact us directly for full program details and eligibility.