Put a Fixed Rate HELOC to work for you
You may have noticed your home value increasing in recent years. The difference between what your home is worth, and how much you owe on the mortgage is equity that you can borrow against with a home equity line of credit (HELOC)*.
Funds can be used for any number of purposes, including repairs and upgrades to your home, consolidating high-interest debt, college tuition and other unexpected expenses.
Are you ready to explore how tapping into the equity in your home can help you work toward your financial goals?
Check your home's equity
You’ll want to start by figuring out how much equity you have in your home, and it’s a relatively simple process. Subtract the remaining balance on your home loan from the appraised value of your home to determine how much equity you have.
Appraised home value - loan balance = home equity
The amount you may borrow varies based on several factors, including income, debt and credit score. In most cases, the maximum HELOC loan amount, when added to remaining mortgage balance, can not exceed 85% of the home’s value.
Connect with an expert
Already have a HELOC or another 2nd Lien, or simply not sure where to begin? We have you. Our US-based loan officers are available to walk you through your options.
Why get a HELOC from Rate?
Rate’s 100% digital application could allow you to apply for a HELOC in 5-10 minutes and get your funds within five days*, where a traditional HELOC could take longer. You could borrow up to $400,0001 depending on the equity in your home, and it comes with a fixed-rate repayment plan so your payments won’t change. Our process is quick, easy and reliable.
*Rate home equity line of credit (HELOC) is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw. This product is currently not offered in the states of New York, Kentucky, West Virginia, Delaware and Maryland. The HELOC requires you to pledge your home as collateral, and you could lose your home if you fail to repay. Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone. Borrowers must meet minimum lender requirements in order to be eligible for financing. Available for primary, second homes and investment properties only. Dependent on minimum credit score and debt-to-income requirements. Occupancy status, lien position and credit score are all factors to determine your rate and max available loan amount. Not all applicants will be approved. Applicants subject to credit and underwriting approval. Contact Rate for more information and to discuss your individual circumstances. Restrictions Apply.
**During Rate's Digital HELOC process, the borrower and/or Rate may need to communicate or facilitate the origination and closing of the borrower’s HELOC using non-digital methods, including but not limited to telephone or letter. There may be instances, due to borrower preference, applicable law, or other reasons, in which HELOC closing must occur in person. Additionally, Rate makes no representations and cannot guarantee that borrower’s HELOC will be serviced by a servicer that maintains an entirely digital process.
***Applications may be completed in five minutes but may fluctuate. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing. In addition, funding timelines may be longer if we cannot readily verify that your property is in at least average condition with no adverse external factors with a property condition report and may need to order a desktop appraisal to confirm the value of your property. Texas borrowers will have a 12-day cooling period prior to closing on their home equity loan which will begin after the borrower has both filed a loan application and received consumer disclosures.
1 Our loan amounts range from a minimum of $25,000 to a maximum of $400,000. For properties located in AK, the minimum loan amount is $25,001. Your maximum loan amount may be lower than $400,000 and will ultimately depend on your home value and equity at the time of application. We determine home value and resulting equity through independent data sources and automated valuation models.
2 To check the rates and terms you qualify for, we will conduct a soft credit pull that will not affect your credit score. However, if you continue and submit an application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.