Is a Home Equity Loan for you?
You don't want to refinance
A Home Equity Loan is a second mortgage. That means no changes to your first mortgage and its interest rate.
You need a lump sum
Your budget has room
You’ll have a second mortgage payment in addition to your first mortgage. Because a Home Equity Loan has a fixed interest rate, the payment amount won’t change.
Guidelines for this loan
Credit
You'll need a credit profile of 680 or above. The better your credit, the more cash you may be able to access.
Equity
You need enough equity in your home to take out at least $45,000.2
Debt
Less than 45% of your income should be going to pay debt.
Closing costs
Because a Home Equity Loan is a second mortgage, there will be similar fees, usually 2-6% of the loan amount.
Comparing Home Equity Loans
Interest rate
Mortgage payments
Length of loan
Closing costs
Home Equity Loan
Estimate and explore
Calculators are a great way to learn and see what's possible.
Mortgage calculator
Estimate your monthly home loan payment, including taxes and insurance.
Home equity calculator
Learn how much cash you have in your home based on its value and what you still owe.
Get more in-depth details
Articles that give you more information about Home Equity Loans and how they work.
6-minute read
When is a home equity loan a good idea?
9-minute read
What is a second mortgage and how does it work?
8-minute read
Using a home equity loan for your remodel
7-minute read
Home equity loans for debt consolidation
6-minute read
When is a home equity loan a good idea?
9-minute read
What is a second mortgage and how does it work?
8-minute read
Using a home equity loan for your remodel
7-minute read
Home equity loans for debt consolidation
Frequently asked questions
Answers to questions about this loan we’ve heard from people like you.
You can estimate your home equity by finding out what your home would sell for, and then subtracting what you still owe on your home. For example, if you could sell your home today for $200,000 and your mortgage balance is $150,000, you have approximately $50,000 in home equity.
However, when taking cash out you may not be able to access all your home equity. You may be required to leave a percentage of your equity in your home, often 20%.
Want to feel confident about how much equity you have? Contact us to get an Official Mortgage Review®.
Here’s what the process looks like:
First you’ll connect with one of our Home Loan Experts, who’ll learn about you and your goals. They’ll guide you through applying if a Home Equity Loan looks like the right choice for you.
Next an independent third-party appraiser will appraise the value of your home. After that, we’ll get working on your loan.
Just like other mortgages, you’ll close on your loan. You get a lump-sum payment after closing for the amount you’re taking out. The minimum is $45,000, up to $500,000.1
All that’s left then is paying on your loan. Because our Home Equity Loan has a fixed interest rate, your payment amount stays the same until it’s paid off.
Many borrowers use a home equity loan to pay for home improvements, consolidate debt or pay for school tuition. That said, you can technically use a home equity loan for anything.
Any time you open a new loan, like a home equity loan, your credit score may drop slightly. The drop will likely be temporary and your score may even increase after opening the loan since your total available credit will go up.