Home Equity Loan

Overview

A home equity loan (sometimes called a "second mortgage" or "fixed-rate second") gives you a single lump sum against your home equity, repaid over a fixed term at a fixed interest rate. Unlike a HELOC, the payment and balance are predictable from day one.

Home equity loans are a good fit when you know exactly how much you need and want the certainty of fixed payments — for example, a defined renovation budget or a debt consolidation. They sit behind your existing first mortgage, so your low-rate first lien is left untouched.

Who it's for

Homeowners with a defined, one-time funding need
Borrowers consolidating debt who want a fixed payoff schedule
Anyone preferring predictable payments over a HELOC's variable rate
Owners keeping a low-rate first mortgage in place

What's typically reviewed

Available equity (combined LTV typically 80-90%)
Credit history
Income documentation
Appraisal or alternative valuation
Existing first mortgage payment history

This is a general description, not a guarantee of approval. Specific requirements vary by lender and program. Final qualification is determined during underwriting.

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