Home Equity Loans & HELOCs

Access your home's equity with fixed-rate loans or flexible credit lines

What are Home Equity Loans?

Home equity loans and Home Equity Lines of Credit (HELOCs) allow you to borrow against the equity you've built in your home. These second mortgages can provide access to significant funds for home improvements, debt consolidation, or other major expenses.

Access Home Equity

Borrow up to 80-85% of your home's value minus existing mortgage

Tax Benefits

Interest may be tax deductible for home improvements

Lower Rates

Typically lower rates than credit cards or personal loans

Equity Calculator

Home Value
$400,000
Mortgage Balance
$250,000
Available Equity
$150,000
Max Loan (80% LTV)
$70,000

Home Equity Options

Home Equity Loan
Rate: 7.50% - 9.50%
Term: 5-30 years

Fixed rate, lump sum payment, predictable monthly payments

HELOC
Rate: 7.00% - 10.00%
Term: 10-30 years

Variable rate, draw funds as needed, interest-only payment option

Common Uses for Home Equity

Home improvements and renovations
Debt consolidation
Education expenses
Major purchases
Emergency expenses
Investment opportunities

Qualification Requirements

Credit Score
680+ typical
Home Equity
15-20% minimum
Debt-to-Income
≤ 43%
Loan-to-Value
≤ 80-85%

HELOC vs Home Equity Loan

Home Equity Loan

  • Fixed interest rate
  • Lump sum payment at closing
  • Predictable monthly payments
  • Good for one-time expenses
  • Pay interest on full amount immediately

HELOC

  • Variable interest rate
  • Draw funds as needed
  • Interest-only payment option
  • Good for ongoing expenses
  • Rates can increase over time

Important Considerations

Home equity loans use your home as collateral. Consider these important factors before borrowing.

Risks
  • • Risk of foreclosure if you can't repay
  • • Reduces home equity
  • • Variable rates can increase (HELOC)
  • • Closing costs and fees
  • • Market value fluctuations
Benefits
  • • Lower rates than credit cards
  • • Potential tax deductions
  • • Access to large amounts
  • • Flexible use of funds
  • • Build home value with improvements