Understanding Home Equity Loan (HELOAN)
A home equity loan, often called a HELOAN, gives you a single lump sum secured by your home's equity. It's typically repaid with fixed payments over a set term, so you know exactly what you'll pay each month.
Like a HELOC, it's a second mortgage, so your existing first mortgage stays exactly as it is.
Who it's a good fit for
- Homeowners who know exactly how much they need
- Borrowers who prefer a fixed, predictable payment
- Owners consolidating debt into one fixed payment
Key details
- You receive the full amount at closing.
- Rates are usually fixed for the life of the loan.
- The loan amount depends on your home's value, your first mortgage balance, credit and income.
- Closing costs vary by lender and loan size.
Home Equity Loan questions
Is a home equity loan the same as a second mortgage?
Yes. A home equity loan is a type of second mortgage, recorded behind your first mortgage.
HELOAN or cash-out refinance?
A home equity loan keeps your existing first mortgage. A cash-out refinance replaces it. The better choice depends mostly on the terms of the mortgage you already have.
How fast can I get a home equity loan?
It depends on the valuation method and documentation, but it's often quicker than a full refinance.
Home Equity Loan financing around Eastern Washington
- Walla Walla, WA: Helps owners of older homes fund a known repair, like a roof or foundation work.
Related programs
Mortgage Refinance
Replace your current mortgage to change your rate, term or loan type.
Learn moreCash-Out Refinance
Refinance for more than you owe and receive the difference in cash.
Learn moreHome Equity Line of Credit (HELOC)
A revolving credit line secured by your home that you draw on as needed.
Learn moreInformation on this page is general and educational. Loan approval, terms and eligibility depend on your full application, credit, property and current program guidelines.