Home Equity Loan (HELOAN) benefits & guidelines

Turn your home equity into the cash you need without giving up your current mortgage rate.  A HELOAN1 offers a fixed rate and steady monthly payments, making it a reliable way to fund renovations, consolidate debt or cover large expenses.

 

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Why choose a Home Equity Loan?

A Home Equity Loan often has a lower interest rate than other equity options. And unlike revolving credit lines, these are one-time loans, providing a clear repayment structure to help you stay on track.

Home equity loan guidelines

To qualify, you'll typically need: 

  • A credit score of 660 or higher 
  • Available equity in your home
  • A manageable debt-to-income ratio

HELOANs offer loan amounts from $50,000 to$500,000 with fixed repayment terms and predictable monthly payments. With funds provided up front as a lump sum, your payment schedule is set from the start, giving you a stable and consistent repayment schedule. 

HELoan Card - Showing Loan Type, selected Home equity loan

HELOAN vs. HELOC

A HELOAN provides a one-time lump sum with a fixed interest rate and predictable monthly payments. A HELOC is a revolving line of credit that allows you to borrow funds as needed and typically features a variable interest rate.

HELOAN

Lump sum funding

Fixed rate

Fixed payments

Best for planned expenses

HELOC

Borrow as needed

Variable rate

Flexible payments

Best for ongoing expenses

Choose a HELOAN if you want the certainty of a fixed rate and predictable monthly payments while keeping your current mortgage rate.

How to apply for a Home Equity Loan

Accessing your home's equity is simple with Rate's Digital Mortgage experience. 

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1. Explore your options

See how a HELOAN can help you access cash for debt consolidation, home improvements or other major expenses.

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2. Gather your information

Provide documents such as income verification, asset statements, and personal identification.

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3. Apply online

Submit your application and work with a dedicated Loan Officer throughout the process.

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1Available as closed end, fixed rate, second lien. Eligibility for second home and investment properties allows for only 10 total financed properties. The total of first and second liens cannot exceed $3M. No more than two mortgage liens are permitted on a single property. Financing subordinate to the new second lien is not permitted. First lien mortgages must be fully amortizing, fixed rate or adjustable rate mortgage loans only. Minimum down payment and FICO score requirements apply and impact total loan amount available from $50,000 to $500,000. Maximum debt to income cannot exceed 50%. State and product restrictions vary so talk to your loan officer about what options may be available to you. Additional restrictions apply. Not all applicants will be approved. Applicant subject to credit and underwriting approval. Not a commitment to lend. Contact Rate for more information.