The HELOC + First Mortgage Combo Strategy: Upgrade Without Losing Your Low Rate
- Michael Belfor
- 1 day ago
- 2 min read
With so many homeowners holding 2–3% mortgage rates, one of the biggest questions this year has been:
“How do I move without giving up my lower rate?”
The answer is the HELOC + first mortgage combo strategy — an approach that allows you to keep your existing low-rate loan while using a Home Equity Line of Credit (HELOC) to cover the difference needed for the new purchase or renovation.
This strategy has become one of the most effective ways to upgrade without waiting for rate cycles to shift.
How the Combo Strategy Works
The structure is simple:
Keep your existing low-rate first mortgage.
Open a HELOC to cover the remaining amount needed.
Make payments only on the HELOC portion.
Consolidate or refinance later if rates drop.
This avoids replacing your entire mortgage with today’s higher rate.
Why It Works Right Now
HELOCs are flexible, interest-only for many years, and perfect for “bridge-the-gap” financing.Buyers who want to move but refuse to give up their 2–3% rate finally have an option that keeps their payment manageable.
Ideal For:
• Move-up buyers
• Families needing more space
• Homeowners with major renovation plans
• Anyone with significant equity but a locked-in low rate
Example
• Current mortgage: $500,000 at 2.75%
• New home price: $850,000
• Keep existing mortgage
• Finance $350,000 with a HELOC
Result: You retain your low rate for the bulk of your debt, and only the HELOC portion is subject to today’s rates — significantly reducing the blended payment.
When to Use This Strategy
The HELOC combo method is strongest when:
• Your existing rate is far below market
• You want to move sooner, not wait
• You plan to refinance later when rates settle
• You want flexibility and liquidity
Bottom Line
The market will eventually offer lower refinance opportunities — but waiting can mean missing the right home.
The HELOC + first mortgage combo lets you move now while preserving one of your biggest financial assets: your low-rate mortgage.
Let me run your blended-payment scenarios and show you what this strategy looks like with your numbers.
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