It's a great fit when you know exactly how much you need, whether that's a kitchen remodel, paying off credit cards, or a major expense you want to cover all at once.
Why homeowners choose a home equity loan
- Predictable payments. A fixed rate and fixed payment make budgeting simple.
- Keep your first mortgage. If you have a low rate on your current loan, there's no need to give it up.
- Get it all at once. The full amount arrives at closing, ready to use.
- Clear payoff date. You know exactly when the loan will be paid in full.
Common ways clients use it
- Kitchen, bath, or whole-home remodels
- Adding a room or an ADU
- Paying off higher-interest credit cards or loans
- Buying out a co-owner or family member
- Large one-time expenses like tuition or medical bills
Home equity loan, HELOC, or cash-out refinance?
All three let you use your equity. The difference is how you receive the money and what happens to your first mortgage:
| Home Equity Loan | HELOC | Cash-Out Refinance | |
|---|---|---|---|
| How you get the money | One lump sum | Draw as needed | One lump sum |
| Payment | Fixed | Usually adjustable | New single payment |
| Your first mortgage | Stays the same | Stays the same | Replaced |
| Best for | A known, one-time cost | Ongoing or staged costs | When a new first loan makes sense |
See a fuller comparison on HELOC vs. Home Equity Loan.
What to have ready
You don't need anything to start a conversation with us. When you're ready to apply, it helps to have:
- Your current mortgage statement
- Proof of income (pay stubs and W-2s, tax returns, or bank statements if you're self-employed)
- Homeowners insurance information
- An idea of how much you'd like to borrow
Where this is available
Home equity loans on your primary residence are available in California, Arizona, Colorado, Florida, and Texas. In Texas, state law sets special rules for home equity on the home you live in. See Texas.
Program availability can vary by state and property. Contact us to confirm options for your home.
Frequently asked questions
Will this change my first mortgage?
No. A home equity loan is a separate second loan. Your first mortgage terms stay the same.
Is the payment fixed?
Yes, home equity loans typically have a fixed rate and a fixed monthly payment for the life of the loan.
I already have a HELOC. Can I still get a home equity loan?
Often, yes, but your existing line may need to be paid off or reworked as part of the new loan. We'll review your current loans and explain your options.
Can I qualify if I'm self-employed?
Yes. We work with many business owners and have programs that use bank statements to show income.