Fixed-rate equity. Predictable payment.
A Home Equity Loan gives you a one-time lump sum at a fixed rate — perfect for a renovation budget, debt consolidation, or any large planned expense. Your first mortgage stays exactly where it is.
When a Home Equity Loan beats a HELOC or cash-out refi
When you know the exact amount you need and want a fixed, predictable payment, a Home Equity Loan is the cleanest tool. You take the lump sum at closing, lock the rate for the life of the loan, and pay it back on a set schedule.
And critically — your first mortgage rate, payment, and balance don't change. If you locked a 3% or 4% rate, you keep it.
- Fixed rate, fixed payment, fixed payoff date — no surprises
- Lump sum at closing, typically $25,000 to $500,000+
- Terms from 5 to 30 years
- Keep your existing first mortgage rate and balance
- Best for one-time, known expenses: renovation, debt payoff, business buy-in
Home Equity Loan FAQ
What's the difference between a Home Equity Loan and a HELOC?+
A Home Equity Loan is a fixed-rate, lump-sum second mortgage with a set monthly payment — like a traditional mortgage. A HELOC is a variable-rate revolving line of credit you draw from as needed. Loans win for known one-time expenses; HELOCs win for ongoing or unknown costs.
Should I take a Home Equity Loan or do a cash-out refinance?+
If your first mortgage rate is meaningfully lower than current rates (anything in the 3s, 4s, or low 5s), a Home Equity Loan almost always wins — you keep your first mortgage untouched. Cash-out refi makes sense when current rates are at or below your existing rate, or when you need to consolidate both loans.
How much can I borrow with a Home Equity Loan?+
Most lenders cap combined loan-to-value (CLTV) at 80–90%. So on an $800,000 home with $400,000 owed, you'd qualify for roughly $240,000–$320,000 in equity loan depending on credit and lender.
Is the interest tax deductible?+
Sometimes. Interest on a Home Equity Loan used to substantially improve the home that secures the loan is generally tax deductible (subject to overall mortgage interest caps). Interest used for other purposes — debt consolidation, tuition, business — is generally not deductible. Talk to your CPA.
How long does a Home Equity Loan take to close?+
Typically 3–4 weeks, similar to a refinance. The underwriting is lighter than a first mortgage because the lender already has collateral; the appraisal is often a desktop valuation.
Can I have both a Home Equity Loan and a HELOC?+
Yes, though uncommon. More often, borrowers choose one or the other based on whether they want a fixed lump sum (loan) or flexible access (line). We'll walk you through both with real numbers.
See your equity loan options.
We'll price your scenario across multiple investors and send a written quote within one business day.