HELOC: Understanding how it works

[Matthew Hunter]

I have an investment property with a balance of $115K but it's zestimate is $180K. Let's assume I can take out a HELOC for $65K. Does the mortgage balance on my home go up to $180K or would the balance on that home stay at $115K with a second loan of $65K?

[Thomas Welch]

Hi Matthew,

No, the HELOC would essentially be a "second mortgage" on the property. The original loan would remain intact, in my experience.