Home Equity Loan
A home equity loan is a second mortgage that gives you a lump sum against your equity at a fixed rate and fixed monthly payment.
What Home Equity Loan means
Unlike a HELOC's revolving credit, it's a one-time disbursement repaid over a set term, which suits a single large expense like a renovation or debt consolidation.
Florida example
A Florida homeowner takes a $60,000 home equity loan at a fixed rate to fund a kitchen remodel, keeping their low-rate first mortgage untouched. The predictable payment makes budgeting simple.
What it is
A home equity loan lets you borrow a lump sum against the equity in your home. You get the full amount at closing and repay it at a fixed rate over a set term.
It sits behind your first mortgage as a second lien. The steady payment makes budgeting simple.
Common uses
Homeowners use these loans for big one-time costs like renovations or consolidating higher-rate debt. A fixed rate means the payment never moves.
We will help you weigh a home equity loan against a HELOC. Reach out and we will run both options on your numbers.
Related program: Learn more →
Verify the details for your own situation against these government and agency sources: CFPB home equity loan guide and CFPB Owning a Home guide.