Common Questions
Are these only available on primary residences?
No. Equity Builder loans are available for primary residences, second homes, and investment properties. There are different Loan-to-Value (LTV) options based on many factors, but primary residences are capped at 90%, second homes are capped at 80%, and investment properties are capped at 75%.
Are these available for both purchases and refinances?
Yes, they are. Refinances are extremely popular because most people aren’t even aware of these loans when they buy. Once they find out about them and see the potential savings, they get on board.
Can you have multiple Equity Builder loans?
Yes you can. You can have 1 primary residence, 1 second home, and 1 investment property at the same time. Because we offer both the All In One Loan and Equity Advancer, Premiere Team clients can technically have 2 of each.
Is the rate fixed or variable? If variable, how is it determined?
With Equity Builder loans being Home Equity Lines of Credit, the rate is variable and adjust the 1st of every month. To determine the rate for that month, you add a margin, that is fixed for the life of the loan, with the
30-day average SOFR index. For February 2026,
For example, if you chose a margin of 3.25 and the SOFR was 3.665 on the 1st of the month, the rate for that month would be 3.25 + 3.665 = 6.915%.
The average of the 30-day average SOFR index since inception in 2018 is 3.0 to 3.2.Who determines the margin?
You do. We will provide multiple different margin options that range from 2.5 to 4.0 in .25 increments. The difference between the margin options is cost. The lower the margin, the higher the cost.
Is there a maximum on how high the rate can go?
Yes, there is a floor and a ceiling.
The floor is how low the fully indexed rate can go, and that is 3.75% on primary and second homes. It is 4.75% for investment properties.
The ceiling is how high the fully indexed rate can go, and that is 6% from the start rate. So, if the start rate is 6.915%, the ceiling is 12.915%.Does this still make sense if I only plan to own a house for 5 years?
Absolutely. Remember, traditional 30-year fixed mortgages have the interest front loaded, so after 5 years, you will likely have paid less than 10% of the balance off. With Equity Builder loans, it could be in the 25% range. Every situation is different, but we can review a paydown summary to see how significant that savings could be.
Are escrow accounts set up with these loans?
No, you will pay your taxes and insurance separately.
What are the closing costs on Equity Builder loans?
Closing costs are the same as standard loan closing costs, with one addition of a New Loan Setup Fee of $995 to set up the checking and connected HELOC account. There is an annual fee that is state and program dependent that ranges from $69 to $149. As mentioned above, different margin options have different costs as well, but we will cover all of these in our estimates.
What states are Equity Builder loans eligible in?
We can offer these loans in all of the states we are licensed (nearly all 50), which can found here. There are a few states that have unique restrictions…New Mexico, Massachusetts, and Texas. Texas Homesteads are not eligible for Equity Builder loans at this time, but second homes and investment properties are eligible.
What would my Financial Advisor think about these loans?
We highly encourage our clients run this by their Financial Advisor. Why? Because once they learn about this loan, they become our biggest referral sources. They will typically run the Simulator on their own scenario, realize how powerful it is, and reach out to discuss. They fully understand the mechanics of interest, amortization, etc., and once they see it in action, they become big fans. So please, run this by them!
What do you guys (Todd and Aaron) think about these loans?
We both believe it is the best mortgage available on the market today. We both have it on our primary residences, and Todd has it on his second home as well. A traditional fixed rate mortgage is great, but these Equity Builder loans are significantly more innovative and if a client qualifies for it and it makes sense for their financial situation, it’s almost a no-brainer to do it.
One advantage that hasn’t been discussed yet is regarding clients with variable income. Let’s say times are good and you are able to really hammer your mortgage balance. But then, your industry hits a slowdown, and you need that money. With the Equity Builder, you can live off the equity you built. If you were in a traditional mortgage, not only would you not be able to access your equity, but you also wouldn’t qualify for a refinance because you wouldn’t have the qualifying income.Anything else?
Yes. Qualifying income, especially for self-employed clients who write everything off. These Equity Builder loans can utilize Asset Depletion and Bank Statement income for qualifying, which is BIG.
Can I see an example?
Click HERE to see a purchase example, comparing the All In One Loan to a 30-Year Fixed. Click HERE for a refinance example.
And for our final most frequently asked question, here’s Aaron Keyes…
What happens after closing?
Upon closing an Equity Builder loan, a few things happen that are unique to Equity Builder. Since it involves a sweep checking account that can take a few weeks to open, it’s helpful to know what to expect.
From the time of closing, it can take four to five weeks for you to receive a packet (first via e-mail, then in your physical mail) with your new Equity Builder checking account’s routing and account numbers. The physical packet will contain your debit card as well. if you’d like to order checks, you can do so online. Your debit card (and checks) will automatically pull funds from your HELOC.
At the time of receiving your new account details, you can begin setting up any ACH deposits or bill-pay accounts. You can also begin moving money from other accounts into your Equity Builder checking.
Every dollar deposited into the Equity Builder checking account will be automatically swept into the HELOC each night at midnight, so if you log into your account (on your phone, or in a web browser) you’ll see that exact amount in your Equity Builder checking account the same day as the deposit, and the next day the checking account balance will be back down to $0, and your HELOC balance will reflect the new lower balance corresponding to the previous day’s deposit. You will use the Northpointe banking app to deposit funds into your Equity Builder.
All deposits will go into your checking account and then transfer (that night) into the HELOC. There are no daily deposit limits for our app. To connect your Equity Builder to external bank accounts, you’ll follow the prompts on each bank’s websites to link the two accounts for instant transfers. If you need to transfer funds from your Equity Builder to an external account, you’ll initiate the draw from the external account’s website.
Note: certain apps—such as Venmo—use “instant verification” before allowing funds to be transferred. Since the Equity Builder checking account will typically show a $0 balance, Venmo may not always work. We recommend keeping an outside checking account that you can use for instant transfers through such apps. You can initiate a transfer from your external account, pull the funds from your Equity Builder, and send via Venmo without any problems.
Logging into your account online will allow you to see (1) your current balance owed on your mortgage, (2) your available equity, (3) that month’s interest rate, and (4) the interest charge that will be added on the 21st of that month. (The mobile app will simply show you #s 1 and 4.) Seeing a $0 balance in your checking account but, say, $240,000 as available equity means you can write a check that day for $240,000. If you owed $200,000 on your HELOC and your wrote a check (or setup an external transfer) for $240,000, the next day you would be paying interest on $440,000 instead of $200,000.