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Home Improvements
Some homeowners use home equity financing for renovations, repairs, additions, or other improvements to their property.
Home Equity Financing
Explore Your Home Equity Options
See how available equity in your home may support your financial goals.
Home equity is the difference between your home's value and the amount you still owe against it. Eligible homeowners may be able to access part of that equity through home equity financing. Answer a few questions about your property and goals to explore potential options.
- Explore ways to access available home equity
- Review potential financing options for eligible homeowners
- Compare next steps based on your property and financial goals
Start Exploring Home Equity Options
Tell us about your home and what you want to accomplish to explore potential home equity financing options from participating lenders.
Home equity financing uses your property as collateral and may involve lender fees, closing costs, interest, and other charges. Exploring options does not constitute approval or a commitment to lend. Loan availability, borrowing limits, rates, fees, and eligibility vary by participating lender and individual circumstances.
Ways Homeowners May Use Home Equity
Home equity financing can provide access to funds secured by your property. The amount available and the appropriate product depend on your equity, lender requirements, borrowing needs, and financial circumstances.
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Consolidating Eligible Debts
Home equity financing may be considered as one way to consolidate certain debts. Because the financing is secured by your home, compare the costs, repayment period, and risks carefully before proceeding.
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Other Major Expenses
Eligible homeowners may explore their available equity for major planned expenses or other qualifying financial needs, depending on the product and lender requirements.
How Exploring Home Equity Options Works
Home equity products and qualification requirements vary by lender. The process generally starts with information about your property, existing mortgage, available equity, and borrowing goals.
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Tell Us About Your Property
Provide basic information about your home, estimated property value, existing mortgage, and other details relevant to available equity.
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Select Your Financing Goal
You may be asked how you intend to use the funds and approximately how much financing you want to explore.
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Review Potential Lender Options
If matching options are available, review the participating lender information and decide whether you want to continue for additional qualification and loan details.
Home Equity FAQs
Common questions about home equity, borrowing against your property, and exploring financing options.
What is home equity?
Home equity is generally the difference between the current value of your home and the amount you owe on loans secured by the property. For example, if a home is worth $500,000 and the outstanding mortgage balance is $300,000, the homeowner has approximately $200,000 in gross equity before considering transaction costs or lender borrowing limits.
Can I borrow all of the equity in my home?
Usually not. Lenders commonly limit how much of a property's value can be borrowed against. The amount you may be eligible to access depends on factors such as property value, outstanding mortgage balances, credit profile, income, debts, loan product, and lender requirements.
What types of home equity financing are available?
Homeowners may encounter products such as home equity loans, home equity lines of credit, and other financing structures that use available home equity. Product availability and terms depend on the participating lender and the borrower's circumstances.
What is the difference between a home equity loan and a HELOC?
A home equity loan typically provides funds as a lump-sum loan with scheduled repayment. A home equity line of credit, or HELOC, generally provides a revolving credit line that eligible borrowers can draw from subject to the account terms. Rates, fees, repayment structures, and availability vary.
Does exploring home equity options affect my mortgage?
That depends on the financing product. Some home equity products may exist alongside the current first mortgage, while other financing strategies can involve replacing or restructuring existing debt. Review the exact structure with the lender before proceeding.
Does exploring these options guarantee that I qualify?
No. Exploring home equity financing options does not guarantee eligibility, approval, a particular loan amount, or specific terms. Participating lenders determine final qualification based on their underwriting requirements.