Lump sum, fixed rate
Home Equity Loan
Borrow a lump sum against your home’s equity with a fixed interest rate and predictable payments.
A home equity loan lets you borrow a lump sum against the equity in your home, with a fixed rate and the same monthly payment from start to finish. It’s a second loan, so your first mortgage stays exactly as it is. That makes it a popular choice for homeowners who already have a rate they want to keep.
Common uses
- A major renovation with a known budget
- Paying off higher-interest credit cards or loans in one step
- A large one-time expense, like tuition or medical bills
- A down payment on a second home or rental property
How it works
- One lump sum at closing
- A fixed rate for the life of the loan
- Set terms, commonly 10 to 30 years depending on the program
- Principal and interest paid every month, so the balance goes down from the first payment
Most lenders allow 80% to 90% of your home’s value across your first mortgage and the new loan combined, depending on your credit and the property. Our Home Equity Calculator can estimate how much equity you may be able to access.
Home equity loan or HELOC?
| Home equity loan | HELOC | |
|---|---|---|
| How you get the money | One lump sum | Draw as needed |
| Rate | Fixed | Usually variable |
| Payment | Same every month | Changes with balance and rate |
| Best for | One known cost | Ongoing or uncertain costs |
Things to weigh
Your home secures the loan, so borrow for things that fit your budget. Paying off credit cards with home equity can save interest, but only if the cards don’t fill back up.
Common questions
Are there closing costs?
Usually, though often lower than a full refinance. We’ll show you the costs up front.
Can I pay it off early?
Many home equity loans have no prepayment penalty. We’ll confirm the terms for your loan.
Is the interest tax-deductible?
Sometimes, depending on how the money is used. Please check with your tax professional.
Know how much you need? Call us at 303-931-3239, or get prequalified online.