Get clear options to tap the value in your home. You can access equity through a revolving credit line or a fixed loan offered by Morgan Stanley Private Bank, National Association. These choices help you meet short-term needs or longer projects while keeping your current first mortgage intact.

You receive straightforward information about rates, fees, and eligibility so you can plan. As a Member FDIC and Equal Housing Lender, the bank uses underwriting standards and independent approval to help ensure responsible credit decisions.

Expect tailored guidance that matches the right credit type to your goals — whether you need flexible access from a HELOC or the predictability of an amortizing loan. Details explain permitted uses of proceeds and restrictions, including limits on depositing funds into brokerage accounts or using them for margin stock.

Key Takeaways

  • You can access home equity via a line of credit or a loan while keeping your mortgage.
  • Morgan Stanley Private Bank applies underwriting and independent approval to protect borrowers.
  • Rates, program availability, and eligibility vary by profile and property.
  • Relationship-based pricing may improve your offered rate if you hold eligible assets.
  • Clear disclosures explain permitted uses and restrictions on proceeds.

Unlock your home equity with flexible lines of credit and loans

A revolving line or a fixed loan lets you convert home value into usable cash for the goals you set today.

The most common option is a home equity line that gives on-demand access to funds during a draw period. You only pay interest on the amount you draw, which helps manage cash flow for phased projects or tuition.

Variable-rate flexibility often ties your rate to the Wall Street Journal Prime Rate, so monthly payments can change during the draw period.

  • You may convert part of a variable balance to a fixed-rate loan to lock in predictable payments.
  • Typical structures include a 10‑year draw period followed by a 20‑year repayment period.
  • Property insurance is required; flood insurance may be needed in certain areas.

“Choose the structure that fits your timeline and how you plan to access funds.”

Compare an equity line credit to a lump-sum loan to match the amount and terms to your needs. Review rate, interest, and payment scenarios before you borrow.

home-equity-loans-morgan-stanley: what you can expect

Before you apply, know how underwriting and program changes can shape your options.

Offered by Morgan Stanley Private Bank, National Association — an Equal Housing Lender and Member FDIC for deposit products. This bank provides regulatory transparency and consumer protections for residential mortgage and equity products.

Approval and review

All applications are subject to underwriting and independent approval. Approval depends on your income, assets, credit profile, property valuation, and other conditions.

Rates and program changes

Rates, terms, and programs are subject change and may change without notice. You should discuss current rates with a lending specialist so you understand the potential effect on monthly payments.

  • You will receive clear information and details, but this should not be read as a commitment lend.
  • Expect disclosure of account servicing rules, documentation needs, and state availability.
  • Consult your tax advisor to review interest deductibility and other home financing implications.

“Final approval and loan terms depend on verified eligibility and documented review.”

HELOC vs. home equity loan: choose the right way to access funds

Deciding between a revolving line and a lump-sum loan comes down to how you plan to use the funds. If you expect costs in stages, a line lets you draw only what you need and pay interest on the amount you use.

home equity line

Home equity line of credit

A home equity line gives flexible access. It is a revolving line credit secured by your home. You often pay interest only on the balance you draw, not the full credit limit.

Many programs tie the rate to the Wall Street Journal Prime Rate and offer a typical 10-year draw followed by a 20-year repayment period.

Home equity loan

A home equity loan provides predictability. You receive a lump sum and make fixed payments over a set term. That fixed rate can help you budget and avoid variable interest swings.

  • Choose a home equity line for phased projects or variable cash needs.
  • Pick a home equity loan for one-time expenses and steady payments.
  • Compare interest, fees, and term length to find the lowest total cost for your situation.

“Balance flexibility against predictability so your home financing supports your goals efficiently.”

Rates, rate discounts, and relationship-based pricing

Understand how your rate can move over time and what that means for your monthly payment.

Many variable HELOC-style credit products link their rate to the Wall Street Journal Prime Rate. That means your rate and payment may rise or fall as Prime changes.

How variable rates work

Variable pricing follows market benchmarks. When Prime moves, the index used to set your rate typically moves in step. You will receive clear information on how your rate and minimum payment are calculated.

Rate discounts and relationship conditions

Relationship-based pricing may apply if you maintain eligible assets at Morgan Stanley Smith Barney LLC. This can produce rate discounts that improve your offered rate.

  • Discounts depend on qualifying account balances and documented eligibility.
  • Relationship pricing is not available on conforming loans or certain product types.
  • Speak with a lending specialist to learn which accounts or savings patterns may help.

Important note on program changes

Programs, rates, terms, and discounts are subject change without notice. Market conditions and internal policy updates can alter available rate discounts and terms.

“Model payment scenarios and consult a lending specialist and your tax advisor to understand rate impact and interest deductibility.”

Eligibility, terms, and how you access funds

Determine whether your property value, credit, and income support the credit amount you need. Lenders base eligibility on your home’s valuation, the existing mortgage balance, and underwriting of income and credit history.

Collateral, valuation, and loan amount considerations

Appraisal and title review set collateral terms and the maximum amount available. Underwriting verifies income, assets, and credit to confirm capacity.

Plan the amount you request to match project scope so you avoid borrowing more than necessary. Property and flood insurance must be maintained per account conditions.

Draw and repayment periods, payments, and interest

Typical structures include a draw period (often 10 years) followed by a repayment period (commonly 20 years). Terms and conditions define how interest accrues and how payments change when repayment begins.

Review additional information on minimum draws, how payments are calculated, and when principal reduction is required.

Convenient ways to access funds once your line is open

Once approved, you can access funds through online transfers, dedicated checks, or by phone, following your account setup and servicing rules.

  • Monitor your account statements to track amounts drawn and available credit.
  • Coordinate draws with contractor or tuition schedules to limit interest costs.
  • Keep documentation handy to maintain terms and avoid interruptions in access.

“Understand the terms and conditions so you can manage access, amounts, and payments with confidence.”

Important risk information and permitted use of proceeds

Before accessing funds, confirm how permitted uses, tax rules, and approval requirements affect your plan. You should review disclosures so you understand risks tied to credit, collateral, and rate changes.

Credit and collateral approval

All credit and collateral are subject to underwriting and independent approval; the materials you review do not represent a commitment lend. Plan knowing final approval depends on income, appraisal, title, and documentation.

Use-of-proceeds limits

Do not use proceeds to purchase, trade, or carry margin stock. You also may not use funds to repay margin debt tied to such stock or deposit proceeds into a brokerage account.

Consult your tax advisor

You should consult your tax advisor to evaluate whether interest may be deductible for your situation. Tax rules and individual circumstances determine deductibility, so coordinate with your financial advisor and attorney as needed.

  • Request details on acceptable and prohibited uses before drawing.
  • Monitor program changes; terms and conditions are subject change without notice.
  • Keep open communication with the bank to resolve questions on documentation and compliance.

“Review disclosures thoroughly to understand risks, payment variability, and documentation requirements.”

Conclusion

Use your home’s value to take advantage of cash options that match your timeline and goals. Choose a home equity line for flexible draws or a loan for a fixed payout and predictable payments.

You should compare fees, interest, and payments, and ask for additional information from a lending specialist so you understand terms conditions and any potential rate discounts.

Remember that programs, rates, and availability are subject change without notice. All offers require underwriting and independent approval and do not represent a commitment lend.

Coordinate your banking, savings, and account relationships and consult a tax advisor to confirm how interest and payments affect your plan. Plan draws to control interest and access funds when you need cash.

FAQ

What options do you have to access your home equity through Morgan Stanley?

You can choose a revolving home equity line of credit (HELOC) or a lump-sum home equity loan. A HELOC lets you borrow as needed and pay interest only on the amount you use. A home equity loan provides a fixed amount with predictable payments. Both options are offered through Morgan Stanley Private Bank, National Association, Member FDIC, and Equal Housing Lender.

Why might you tap your equity now?

You may access funds for home renovations, college tuition, consolidating higher-interest debt, or other major expenses. Using an equity line can provide lower rates than many unsecured options, but you should weigh costs, fees, and repayment terms against your goals.

How do variable rates and potential fixed-payment options work?

Variable rates often track an index such as the Wall Street Journal Prime Rate and can change over time. Some programs offer ways to convert all or part of your balance to a fixed-payment structure. Rate discounts may apply based on your relationship with the bank and specific terms and conditions.

Are rates, programs, and discounts guaranteed?

No. Rates, terms, programs, and discounts are subject to change without notice. Offers depend on underwriting, creditworthiness, and independent approval, and they are not a commitment to lend.

What underwriting and approval steps should you expect?

Approval requires evaluation of your credit, income, and the property used as collateral. The bank will order a valuation and verify documentation. Final approval is independent and subject to the bank’s lending policies.

How is the loan amount determined?

Loan limits depend on your property valuation, outstanding mortgage balances, the lender’s maximum loan-to-value (LTV) guidelines, and your ability to repay. Collateral and valuation results influence the approved amount.

What are draw and repayment periods for a HELOC?

A HELOC typically has a draw period during which you can borrow and make interest-only or principal-plus-interest payments. After the draw period ends, a repayment period begins when you must pay principal and interest. Specific timelines vary by program.

How can you access funds once the line is open?

You may access funds via checks, online transfers to your bank account, or linked accounts depending on the bank’s available disbursement methods. Confirm available options with your banker or account representative.

Are there restrictions on how you can use the proceeds?

Yes. Proceeds cannot be used to purchase, trade, or carry margin stock, repay margin debt, or be deposited into brokerage accounts. Other permitted uses typically include home improvements, debt consolidation, education, and personal expenses.

Is interest on your equity borrowing tax-deductible?

Interest deductibility depends on your individual tax situation and current tax law. Consult your tax advisor to determine whether interest is deductible for your case and to understand any limits or requirements.

What fees and costs should you expect?

Fees may include appraisal or valuation charges, origination or application fees, closing costs, and possible annual or inactivity fees. Fee amounts and applicability depend on the program and your relationship with the bank. Ask for a Loan Estimate or fee schedule for details.

Can you get relationship-based pricing or rate discounts?

Relationship-based pricing and rate discounts may be available based on your accounts, assets, or qualifications. These discounts vary and are not available on all loan types, such as certain conforming loans. Terms and availability are subject to change without notice.

What happens if your credit or collateral changes after approval?

Credit and collateral are continuously subject to the lender’s policies. Significant adverse changes may affect your rate, available credit, or continued approval. Maintain communication with your banker if circumstances change.

Is applying a commitment to lend?

No. Submission of an application and preapproval do not guarantee funding. All approvals are subject to underwriting, documentation, and the bank’s final review and independent approval.

Where can you get more details and the latest terms?

Contact a Morgan Stanley Private Bank representative for the most current rates, terms, and program details. Always review the lender’s disclosures and request written terms before proceeding.