Loan options
One lump sum, one fixed rate, one payment that never changes. Your first mortgage stays exactly where it is. For most homeowners sitting on a low rate, this is the default answer.
See what you qualify forNo credit pull. One licensed local loan officer.
This is probably you
You know the number. There is a contractor's quote on the counter, or a set of card balances you have finally decided to deal with. It is not a range, it is a figure.
You have a mortgage rate you would be foolish to give up, and you want a payment you can plan around for years without watching rate news. You are not looking for flexibility. You are looking for it to be handled.
What $75,000 looks like
Illustrative example at assumed rates, not a quote. Your terms will differ.
Worth sitting with: the interest figure is larger than most people expect, and it is the number lenders quote least often. A shorter term raises the payment and cuts that total substantially. Ask to see 10 and 15 year options, not just the longest one.
Run this on your own numbersChoose a home equity loan if
You know the amount, you want a fixed rate and a fixed payment, and your first mortgage rate is worth protecting. This is the most common answer for a reason.
Choose a cash-out refinance if
Your current mortgage rate is at or above today's market. In that case replacing it entirely may cost less than stacking a second loan on top of it.
You borrow a set amount against your equity and receive it all at once. The rate is fixed for the life of the loan, and the payment is the same every month until it is repaid. Terms commonly run somewhere between five and twenty years.
It sits behind your existing mortgage as a second lien, which is the whole point. If you locked a rate of three or four percent in the last few years, that rate is one of the most valuable financial assets you own. A home equity loan lets you access cash without surrendering it.
The trade-off against a HELOC is flexibility. You take the full amount up front and pay interest on all of it from day one, whether you have spent it or not. In exchange you get certainty, and you are insulated from rate movements entirely.
Expect closing costs similar to a smaller mortgage: appraisal, title, and lender fees. Ask for the full schedule in writing, and ask specifically whether any waived fee comes with a condition, such as repaying the loan before a certain date.
A home equity loan makes sense when
You know exactly how much you need, such as a contractor's quote or a payoff figure on other debt.
You want a payment you can budget around for years without worrying about rate changes.
Your first mortgage rate is well below today's market and worth protecting.
You are replacing higher rate debt, where a fixed secured rate genuinely lowers what you pay.
Look elsewhere when
You do not know the final number yet. Borrowing more than you need means paying interest on money sitting idle.
Your costs will arrive over months or years. A line of credit fits that shape better.
Your current mortgage rate is high. Replacing it entirely with a cash-out refinance may cost less overall.
The new payment only works in a good month. A second lien is secured by your home.
Will this change my current mortgage?
No. It is a separate second loan. Your existing rate, balance, and payoff date are unaffected, and you will simply have two payments instead of one.
How much can I borrow?
Lenders look at your first mortgage plus the new loan together against your appraised value. Most cap that combined figure in the eighties as a percentage, though the exact limit depends on the lender, your credit, and your income.
Is the interest tax deductible?
It can be in some circumstances, generally when the funds are used to buy, build, or substantially improve the home securing the loan. Rules are specific and depend on your situation. Ask a tax professional rather than relying on a website.
How long does it take?
Typically a few weeks from application to funding, largely driven by how quickly the appraisal and title work come back.
Find out what your equity supports.
A licensed local loan officer will run your numbers and tell you honestly if another route is cheaper.
Get my real numbersFigures on this page are illustrative and are not an offer, quote, or commitment to lend. Rates, terms, limits, and approval are set by the lending partner and vary by borrower, property, and credit. Borrowing against your home carries risk, including the risk of losing it if you cannot repay.