Unlock Your Home's Value with a Home Equity Loan or HELOC
Compare a flexible line of credit with a fixed-rate loan, see how much you could borrow, and apply online with a licensed lender - available to homeowners in 15 states.
- 15 statesLicensed and serving
- Fixed or variableLoan or line of credit
- Apply onlineSecure digital application
HELOC or Home Equity Loan: Choose Your Fit
Both let you borrow against your home's equity. The difference is how you receive the money and how the rate works.
HELOC
A flexible line of credit you draw from as needed
Personalized rates
Variable APR
- Borrow, repay, and borrow again during the draw period
- Pay interest only on what you use
- Interest-only payment options during the draw period
- Best for projects paid in stages or ongoing costs
Home Equity Loan
A fixed-rate lump sum with the same payment every month
Personalized rates
Fixed APR
- Fixed rate that never changes
- Receive the full amount at closing
- Terms from 5 to 30 years
- Best for a single expense with a known cost
See the detailed HELOC vs. home equity loan comparison
Your rate depends on your credit score, combined loan-to-value ratio, debt-to-income ratio, property type, occupancy, and loan amount. Home equity loans have fixed rates; HELOCs have variable rates that can increase after account opening. All loans are subject to credit and property approval.
How Much Can You Borrow?
Lenders typically let your total mortgage debt - your first mortgage plus the new loan or line - reach 80% to 90% of your home's value. That limit is called the combined loan-to-value ratio, or CLTV.
On a $400,000 home with a $200,000 mortgage, an 85% CLTV limit means you could borrow up to about $140,000.
Example at 85% CLTV
- Home value
- $400,000
- x 85% CLTV limit
- $340,000
- - Mortgage balance
- $200,000
- Borrowing power
- $140,000
How It Works
- 1
Estimate your equity
Use the calculator to see how much you might borrow at typical loan-to-value limits - it takes about a minute.
- 2
Check your rate and apply
Choose your state and product, then complete a secure online application with our lending partner, Spring EQ.
- 3
Close and access your funds
After valuation and underwriting, you sign your documents. Funds are available after the three-day right-to-cancel period on a primary home.
Popular Ways to Use Your Home Equity
Home improvements
Kitchens, roofs, additions, and repairs. Interest may be tax-deductible when funds substantially improve the home securing the loan.
Debt consolidation
Replace high-rate credit card balances with one lower-rate payment - while keeping in mind the debt becomes secured by your home.
Major expenses
Education costs, medical bills, or other large expenses when a lower secured rate beats the alternatives.
A financial backstop
An open HELOC you draw from only when needed can serve as a backup for emergencies. Many lines charge nothing until you draw.
Home Equity Loans & HELOCs in 15 States
Local home values, borrowing examples, and state rules that affect your closing.
Learn Before You Borrow
All guidesHow to Calculate Home Equity
The simple formula for home equity, how lenders apply loan-to-value limits, and how to estimate how much you could borrow.
ProcessHELOC & Home Equity Loan Application Guide
Step-by-step: the documents you need, what happens at appraisal and underwriting, typical timelines, and how to avoid delays.
Using Your EquityFinancing Home Improvements With Equity
How to finance a renovation with a HELOC or home equity loan, which projects add value, and when the interest may be tax-deductible.
Using Your EquityUsing Home Equity to Consolidate Debt
How consolidating high-interest debt with home equity works, how to estimate savings, and the risks of turning unsecured debt into secured debt.
Home Equity Questions, Answered
What is the difference between a home equity loan and a HELOC?
A home equity loan gives you a lump sum with a fixed interest rate and fixed monthly payments. A HELOC (home equity line of credit) is a revolving line you draw from as needed, usually with a variable rate. HELOCs have a draw period (often 10 years) followed by a repayment period.
How much can I borrow with a home equity loan or HELOC?
Most lenders let your total mortgage debt reach 80% to 90% of your home's value. For example, if your home is worth $400,000 and you owe $200,000, an 80% to 90% limit means you could borrow roughly $120,000 to $160,000. Your credit score, income, and debt-to-income ratio also affect the amount.
What are current home equity loan and HELOC rates?
Rates change with the market and are priced for each borrower. Your rate depends mainly on your credit score, combined loan-to-value ratio, debt-to-income ratio, loan amount, and property type. HELOC rates are typically variable and tied to the Prime Rate; home equity loans have fixed rates. Checking your rate online is the fastest way to see what you qualify for.
What are the requirements to qualify?
Typical requirements include a credit score of 620 or higher (680+ for many HELOCs), a debt-to-income ratio under roughly 43% to 50%, enough equity to stay within the lender’s CLTV limit after the new loan, verifiable income, and homeowners insurance. Expect a home valuation and documentation of income and assets.
How long does the process take?
Many borrowers close within two to six weeks. The timeline depends on how quickly you provide documents, the valuation method, title work, and scheduling. On a primary residence, you have three business days after closing to cancel before funds are released.
Are there closing costs for home equity loans and HELOCs?
Usually. Closing costs often run 2% to 5% of the loan amount and can include appraisal, origination, title, recording, and, in some states, mortgage taxes. Some lenders offer reduced-cost options in exchange for a higher rate. Compare the total cost, not just the rate.
Can I use the funds for any purpose?
Generally yes - common uses include home improvements, debt consolidation, education costs, and large purchases. Interest may be tax-deductible only when the funds are used to buy, build, or substantially improve the home that secures the loan. Consult a tax advisor about your situation.
Ready to Access Your Equity?
See the options you qualify for in a few minutes.