Resources to guide your home equity loan journey

Getting started with a home equity loan can be tough. You must figure out how much money you want to borrow, how much you’re eligible to borrow, which loan type will work best for you, and which lender to go with. As much as we encourage eligible homeowners to take advantage of their equity by looking into these options, we’re aware that doing so is a huge financial decision that shouldn’t be taken lightly. To that end, taking the time to do your research is certainly the first step.

To make this process a little bit easier, we’ve compiled several resources here which offer clarity on the topic. Whether it’s our writeups on the different loan options, our handy loan calculator, or links to government resources, we hope this proves useful for your home equity loan journey.

See the Best Home Equity Loan Options

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Home equity loan types

Here are the three major loan types that utilize your home equity:

  • Fixed home equity loan: These loans offer a lump-sum cash payment with a fixed interest rate. To learn more, click here.
  • HELOC: HELOCs, or home equity lines of credit, make a certain amount of cash available to borrow for a set period, with most of these loans including an adjustable interest rate. For more information, click here.
  • Cash-out refinance: Like any refinance, a cash-out refinance replaces your current mortgage with a new loan, adding the amount of cash you’ve asked to borrow on top of the total owed. For more on this, click here.

As these options all have their own benefits and typical use cases, we suggest taking your time in reading up on each. It’s likely that one will stand out as the most suitable for your needs, and from there you’ll be able to move forward with the loan process.

Home equity loan calculator

No matter which type of loan you prefer, however, a key piece to the puzzle is just how much equity you have in your home, as this is the pool you will be borrowing from, and this will also be one of the deciding factors when it comes to your loan eligibility. We’ve created a free, easy-to-use home equity loan calculator to make it simple to figure out what you might qualify for.

Other resources to keep you on track

Besides our site articles and our home equity loan calculator, we also recommend that homeowners do some added research before taking the plunge. Here are a few other trustworthy sources to look into before you choose a loan type and lender:

While taking out a loan is always a big deal, it doesn’t have to be a difficult undertaking. By taking the time to carefully research the second mortgage process beforehand, you’ll be better prepared when you do decide to make a move.