Fidelity FundingA Premier Mortgage Banker
(800) 592-8882Get Started

Home Equity Loan

A home equity loan gives you a one-time lump sum at a fixed rate, repaid with predictable monthly payments, while your first mortgage stays exactly as it is.

Get Started (800) 592-8882
Contemporary patio and swimming pool overlooking the coast

What is a Home Equity Loan?

A home equity loan is a second mortgage that is paid out all at once. Because the rate and payment are fixed, it is well suited for a single large expense such as a remodel, a large purchase or consolidating debt.

Fixed rate

Your rate and payment never change.

Lump sum

Receive all of the funds at closing.

Keep your first loan

Leave your current mortgage rate in place.

Set payoff date

Know exactly when the loan is paid off.

Is a Home Equity Loan right for you?

Who it is for

  • Homeowners with a single known expense
  • Borrowers who want a fixed rate on their equity
  • Homeowners keeping a low first mortgage

Benefits

  • Fixed rate and fixed payment
  • Lump sum at closing
  • Keeps your current first mortgage

Things to consider

  • Rates are usually higher than a first mortgage
  • Interest applies to the full amount right away
  • Adds a second monthly payment

Everything about the Home Equity Loan

Choose a topic to jump to the details.

Home equity loan vs. HELOCHow much you can borrowCommon usesHome Equity Loan FAQs

Home equity loan vs. HELOC

Choose a home equity loan for a single, known cost and payment certainty. Choose a HELOC for ongoing or uncertain expenses.

Back to topics

How much you can borrow

Most lenders allow combined loan-to-value of about 80% to 90%, meaning your first mortgage and the new loan together.

Back to topics

Common uses

Kitchen and bath remodels, additions, paying off higher-interest debt and major life expenses.

Back to topics

How to apply

  1. 1

    Request a call back

    Tell us about your goals. A loan officer will confirm whether this program is the right fit.

  2. 2

    We prepare the application

    We fill out the application with you and send a secure list of documents to upload.

  3. 3

    Approval and closing

    We handle appraisal, underwriting and title, keeping you updated by phone, text or email.

Documents to have ready

  • Current mortgage statement
  • Income documentation
  • Homeowner's insurance
  • Photo ID

Every file is different. Your loan officer will send an exact list.

Home Equity Loan FAQs

Have a question that is not answered here? Ask a loan officer.

How long are home equity loan terms?

Commonly 5 to 30 years.

Are closing costs lower than a refinance?

Often, since you are borrowing a smaller amount.

Can I pay it off early?

Most allow early payoff; ask about any prepayment terms.

Is it the same as a second mortgage?

It is one type of second mortgage.

Is interest tax-deductible?

Sometimes, when funds are used to buy, build or substantially improve the home. Ask your tax advisor.

Talk to a loan officer

Talk with us about a Home Equity Loan

Tell us a little about your plans. A licensed loan officer will call you, usually the same business day.

  • No cost and no obligation
  • We can fill out the application for you
  • Evening and weekend calls available

Prefer to call? (800) 592-8882

Related programs

HELOC I want a flexible line of credit A revolving line of credit secured by your home's equity. Learn more Second Mortgage I want to borrow without refinancing A loan behind your first mortgage: lump sum or line of credit. Learn more Cash-Out Refinance I want to turn home equity into cash Refinance for more than you owe and take the difference in cash. Learn more