Borrow against your home at a fixed rate.
Turn your equity into one lump sum with a fixed rate and monthly payment.
When a home equity loan may make sense
A home equity loan can work well when you know how much you need and want a predictable monthly payment. Home projects, major repairs, and other large one-time expenses are common uses. Your available equity helps determine how much you can borrow.
Home Equity Loan Snapshot
Get a lump sum from your home equity and repay it with fixed monthly payments over time.
How a home equity loan works
- 1Borrow against your equity
- Equity is your home’s value minus any mortgage balance.
- The lender reviews your finances and home value to determine how much it may lend.
- 2Receive the money at once
- You get the loan proceeds as a lump sum.
- A home equity loan usually has a fixed rate, and closing costs or other fees may apply.
- 3Repay it over time
- You make regular payments on the home equity loan.
- If you still have a mortgage, you keep making that payment too.
- The loan is secured by your home, so keeping up with payments matters.
Consider other home equity options
Estimate before you apply
Home equity loan questions
How does a home equity loan work?+
A home equity loan gives you a lump sum backed by your home, which you repay on a set schedule. It is a separate loan, so your current mortgage stays in place. Rates are usually fixed, but check the offer's terms.
How much can I borrow with a home equity loan?+
It depends on your home's value, what you already owe on it and the lender's rules. Lenders compare your existing home debt plus the new loan with your home's value. They may also weigh your income, credit and other debts. There is no single limit that applies to every lender.
What do I need to qualify for a home equity loan?+
Lenders may check your equity, credit, income, existing debts and home value. Requirements vary, and meeting one lender's standards does not guarantee approval.
What closing costs come with a home equity loan?+
You may pay lender, appraisal, title and recording charges. Ask for the full cost before you accept an offer, especially if you plan to borrow a smaller amount. If you can add costs to the loan, doing so increases what you owe.
How is a home equity loan different from a HELOC?+
A home equity loan pays out one lump sum, usually with a fixed rate and set payments. A HELOC lets you draw money as needed. HELOC rates and payments may change, though terms vary.
How is a home equity loan different from a cash-out refinance?+
A home equity loan leaves your current mortgage in place and adds a separate payment. A cash-out refinance replaces that mortgage with a larger one. Compare the full costs and new payment before choosing.
What happens if I cannot repay a home equity loan?+
Because your home secures the loan, missed payments could lead to foreclosure. That risk remains even if you keep paying your first mortgage. Contact the lender early if you think you may miss a payment.
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