Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity HELOCs Can I Increase My HELOC Limit? Updated Jan 31, 2025 4-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Jerry Brown, CFEI® Written by Jerry Brown, CFEI® Expertise: Credit, debt management, personal loans, student loans Jerry Brown is a freelance personal finance writer and Certified Financial Education Instructor℠ (CFEI®) who lives in New Orleans. He covers a range of personal finance topics, including credit, personal loans, and student loans. Learn more about Jerry Brown, CFEI® Reviewed by Eric Kirste, CFP® Reviewed by Eric Kirste, CFP® Expertise: Debt management, tax planning, college planning, retirement planning, insurance planning, estate planning, investment planning, budgeting, comprehensive financial planning Eric Kirste CFP®, CIMA®, AIF®, is a founding principal wealth manager for Savvy Wealth. Eric brings 22 years of wealth management experience working with clients, families, and their businesses, and serving in different leadership capacities. Learn more about Eric Kirste, CFP® If you need extra funds for expenses such as home improvements or debt consolidation, increasing your HELOC limit may be an option. Refinancing with your current lender or switching to a new one could provide access to more credit at potentially lower rates. Here’s how to get started. Table of Contents Skip to Section How to increase your HELOC limitCan you increase your HELOC limit without refinancing?Should I refinance to increase my HELOC limit?FAQ How to increase your HELOC limit Increasing your HELOC limit often requires refinancing your current line of credit. Start by asking your lender whether it allows refinancing to increase your limit, and then compare rates and fees from other lenders to ensure you’re getting the best terms. Some lenders may charge closing costs, while others offer fee-free refinancing options. Once you’ve chosen the best lender for your situation, submit a refinance application. Be prepared to provide the following documents: Government-issued ID (e.g., driver’s license or passport) List of current debts Recent pay stubs and the last two years of W-2s Business tax returns (if self-employed) Lenders may take two to six weeks to process your application, depending on your financial profile and the complexity of your request. If you don’t have a budget and long-term plan to pay off the debt, increasing your HELOC may be unwise. If you default on your HELOC, the lender has rights to your property. Consider how you plan to use the funds. Increasing your HELOC just to have more may not be the best option. Eric Kirste, CFP® Once you understand how to apply, you may want to explore whether refinancing makes sense based on your current financial situation. Read More HELOC Eligibility Requirements Can you increase your HELOC limit without refinancing? While most lenders require refinancing to increase a HELOC limit, some may allow you to modify your credit line without a full refinance. This option can be appealing if you want to avoid higher interest rates or closing costs associated with refinancing. However, finding a lender that offers this flexibility can be challenging. Most lenders require you to submit a new HELOC application to increase your limit. If your lender doesn’t allow modifications, refinancing may be your best alternative for accessing additional funds. Should I refinance to increase my HELOC limit? Refinancing your HELOC can make sense in some situations but may not be the right choice for everyone. Here are the factors to consider. ✔️ When to refinance Your home’s value has increased: A higher home value can help you qualify for a larger credit limit. You can afford to borrow more: Stable income and a manageable debt load make refinancing less risky. You qualify for a lower rate: Refinancing at a lower rate can reduce your borrowing costs. ❌ When to reconsider refinancing Your home’s value has fallen: Lower equity may reduce your borrowing potential or even lead to a decreased limit. Your financial situation is uncertain: Refinancing could add risk if your income or debt situation is unstable. Average HELOC rates have increased: Higher market rates may make refinancing less attractive. It may make sense to increase your HELOC if you need to consolidate additional debt by organizing and streamlining all your payments into one single loan, which could save you money over time, depending on the interest rate. If you started with a smaller HELOC, paid down your mortgage balance, and now have access to additional equity for larger purchases, a higher HELOC limit can enable you to finance larger expenses such as renovations, college tuition fees, or a new car. Eric Kirste, CFP® If refinancing isn’t the right fit, consider these alternatives for accessing more equity. FAQ What’s the maximum HELOC amount? HELOC limits are often capped at 85% of your home’s appraised value minus the balance you owe on your mortgage. But lenders also consider your credit history, income, and overall financial health when setting your limit. Based on your financial profile, you could be eligible for less than 85% of your home’s value. What other options do I have if refinancing my HELOC isn’t right for me? Refinancing isn’t the only route when you want to increase your credit line. Another option could be to apply for a home equity loan. Unlike a HELOC, which is a revolving line of credit, a home equity loan provides you with a lump sum. Another strategy could be to seek out a personal loan. You might also want to consider paying down debt to improve your credit profile, which can be more appealing to lenders. Will any terms other than the credit limit change by increasing my HELOC limit? If you update your HELOC limit by refinancing, anticipate other possible changes. The interest rate, for instance, might change, or the terms and conditions. Your lender might also update the minimum payments, variable rates, and timelines. Be sure to scrutinize any changes and question anything that seems unclear.