Find Low Home Equity Loan Rates
As your home rises in value and you pay down your mortgage, you'll build substantial equity in it. While having equity is a good thing, it also means you have a lot of trapped money that you may want to put toward other uses, like paying off debt or financing a home improvement project.
IT'S FAST, FREE AND WON'T AFFECT YOUR CREDIT.
Easily compare home equity loan rates not just ranges or estimates.
Alternatives to Home Equity Loans
Tap Into Home Equity Without a Loan
We have 2 different companies that we've partnered with that offer alternatives to home equity loans. These are ideal solutions if you have less than perfect credit but have a lot of equity locked up in your home. You will usually need a 60% LTV or better to qualify for these offers.
They can help homeowners even if they are late on their mortgage payments.
Consider a 0% APR Credit Card
If you have Good to Excellent credit and only need $5,000 to $20,000 consider getting a 0% APR credit card instead of a home equity loan. These offer fast approval and in many cases there will be no interest payments due for up to a year or more.
This is a great solution if you think you can pay the card off within the low rate grace period.
Get a Low Rate Personal Loan
You can find a loan through our lenders and get up to $40,000 with rates from 4.99%. And instead of waiting on a long, tedious process, you can get your funds in as little as 1 day from approval.
You don't need to have perfect credit to get a personal loan. So instead of going from lender to lender to find something you qualify for, just let us help you explore all your options at once and find the best offers for you.
What are the pros and cons of a second mortgage or home equity loan?
Things to consider before taking out a Home Equity Loan
You must have enough equity in your home to qualify
You should have equity in your home to protect both you and the bank.
Most banks won't issue a home equity loan unless your combined loan-to-value ratio is around 80% or less, although some banks allow you to borrow up to 95% of the value of your home if you have good credit and a history of on-time payments. Expect to pay more for a loan with a higher loan-to-value ratio.
You have a choice between a Home Equity Loan and a Cash Out Refinance
While home equity loans and home equity lines of credit have much lower interest rates than credit cards, their rates are generally higher than those on a first mortgage.
The difference can be substantial. The interest rate on a 30-year fixed rate mortgage is around 4% as of this writing, but the interest rate on a home equity loan is 5.21%, and the interest rate on a home equity line of credit is 5.45%. So be prepared to pay more for the privilege of tapping into your equity.
Mortgage Interest Should be Tax Deductable
One big benefit of both home equity loans and home equity lines of credit is the tax deductibility of loan interest. You can deduct interest on a loan up to $100,000 if you're married filing jointly, or $50,000 if you're single or married filing separately.
Deducting your loan interest could save you thousands of dollars, but you must itemize your deductions in order to claim that tax break -- and only around 30% of households itemize.
Loan to Value Ratio:
A loan to value (LTV) ratio describes the size of a loan you take out compared to the value of the property securing the loan. Lenders and others use LTV's to determine how risky a loan is. The total of all debts secured by your home divided by the value of your home will give you your Loan To Value ratio.