Loan Programs
Home Equity Loans
Borrow a lump sum of money using the equity in your home, with a fixed interest rate and predictable monthly payments.
Borrow a lump sum of money using the equity in your home, with a fixed interest rate and predictable monthly payments.
Understanding Home Equity Loans
Often referred to as a "second mortgage," a home equity loan provides you with a one-time lump sum payout. Because it typically comes with a fixed interest rate, your monthly payments will remain identical throughout the life of the loan, making it easy to budget.
Benefits
- Fixed interest rates provide payment stability.
- Receive funds upfront for large, immediate expenses.
- Interest may be tax-deductible if used for home improvements (consult a tax advisor).
- Lower interest rates compared to personal loans or credit cards.
- Predictable payoff schedule.
Who is Eligible?
- Homeowners who have built up at least 15% to 20% equity in their home.
- Borrowers with strong credit (usually 680+ is preferred for the best rates).
- Individuals with stable income and a reasonable debt-to-income ratio.
What is the Process?
- Determine Equity: We review your current mortgage balance against the estimated value of your home.
- Application & Appraisal: You apply for a specific loan amount, and an appraiser confirms your home's current market value.
- Underwriting: We verify your income and credit to ensure you can comfortably manage the new monthly payment alongside your primary mortgage.
- Closing & Funding: Once approved, you close on the loan and receive the entire loan amount as a single lump-sum deposit into your bank account.
Is Mortgage Insurance Required?
No. Just like a HELOC, home equity loans do not require PMI because lenders limit your total borrowing (primary mortgage + home equity loan) to a safe percentage of your home's total value (usually 80-85%).