Home Equity Loan (HELOAN)

It's Your Mortgage. Let It Work for You with a HELOAN.

✓ Access up to 95% of your home’s equity

✓ Enjoy consistent payments with fixed rates

✓ Apply with ease and get fast decisions


What is a Home Equity Loan (HELOAN)?

A home equity loan, also known as a HELOAN, is a single installment loan leveraging your home’s equity as collateral. These loans come with several advantages, notably their fixed interest rates—often lower than many loan types. Additionally, they provide a steady monthly payment, ensuring you have a consistent repayment schedule that can last up to 30 years.

Applying for a HELOAN

To qualify for a home equity loan or HELOAN, you need adequate home equity. We allow homeowners to borrow up to 95% of their primary home’s value, subtracting any existing mortgage balance. Your eligibility for a HELOAN is influenced by several key factors:

  • Creditworthiness and credit history
  • Employment stability
  • Monthly income versus monthly obligations

It’s similar to the process you underwent for your initial mortgage, ensuring you can manage this new line of credit responsibly.

Explore What's Possible with a HELOAN

Ever imagined your home could fund your dreams? Whether you’re eyeing renovations, planning a big purchase, or consolidating debt, it’s possible with a HELOAN. Dive into our user-friendly 5-minute application and get tailored financial solutions fast—within just two days. Step forward with clarity and confidence.

Benefits of a HELOAN

Predictable Payments

With a HELOAN, you can count on consistent monthly payments thanks to fixed interest rates. This stability simplifies budgeting and offers peace of mind throughout the loan term.

Immediate Lump-Sum Access

Upon approval, a HELOAN grants you a one-time lump sum, providing immediate funds for sizable expenses, from home renovations to debt consolidation. It's your equity, now readily available for big ventures.

Efficient Application Process

Our streamlined HELOAN application is designed for your convenience. Spend just five minutes to apply and expect tailored loan solutions in under 48 hours. Our expert loan partners are on standby, ready to to answer all of your questions.

Top 3 Smart Uses for Your HELOAN

Value-Boosting Renovations

Considering a one-time home upgrade? A home equity loan can be your ideal partner. It's not just home improvement; it's a strategic reinvestment in your property's worth.

Simplified Debt Management

Feeling weighed down by multiple debts? Use a home equity loan to consolidate them. Streamline into a single, easier-to-manage payment with a competitive interest rate.

Funding Large Expenses

Whether it's a dream wedding or an important educational pursuit, sometimes savings alone aren't enough. A home equity loan offers an affordable solution to meet substantial expenses head-on, ensuring you can cover significant milestones without compromising your financial health.

How to get a Home Equity Loan

The process for getting a HELOAN is simple.

  • Share Your Requirements

    Fill out our online form in just 5 minutes to help us assist you better.

  • Connect with a Loan Partner

    You’ll be connected with an experienced Federal Hill Mortgage Loan Partner ready to help you determine the right product for you.

  • Complete the Process

    Your FHM loan partner will handle the submission of your home equity application, ensuring you can access your funds swiftly.

Common questions about Home Equity Loans (HELOAN)

  • Yes. Home equity loans are often called second mortgages. While a traditional mortgage gets you into the home, a home equity loan is taken after you've built up equity.

  • A home equity loan provides a lump sum at closing, repaid through monthly principal and interest payments until fully settled.

  • Both tap into home equity but function differently. A HELOC is a revolving line of credit, much like a credit card, usually over 5-10 years. A HELOAN offers a lump sum repaid over a fixed term. HELOCs have variable interest rates, while HELOANs are fixed.

  • During a HELOC's draw period (usually 5-10 years), you make interest-only payments. After this, you repay both principal and interest over 10-20 years. A HELOAN has consistent monthly payments covering both the principal and interest.

  • Second mortgages, including HELOCs and HELOANs, usually have higher rates due to increased risks. In foreclosure, the first mortgage is prioritized, and second mortgages face a higher risk of not being fully repaid.

  • Rates are typically lower than other credit forms since the home is collateral, reducing bank risk. Rates vary based on creditworthiness, loan amount, loan-to-value ratio, and market conditions.

  • You can usually borrow up to 95% of your home's equity. Calculate your equity by subtracting your mortgage from your home's current market value. The loan amount also depends on income and credit history.

  • Yes. Lenders appraise your home to determine its current market value and the available equity to borrow against.

  • After approval and closing, borrowers generally receive their funds within two weeks, though individual circumstances can affect this.

  • Primary benefits include potentially lower interest rates than other credit types. Interest paid on a home equity loan may also be tax-deductible in some cases.