Home Equity Loan
Get Cash from your home
What cash-out option is better for me?
Need to tap into the value of your home? Two loan options can help: the Home Equity Loan (HELOAN) and the Home Equity Line of Credit (HELOC). Both unlock your home equity for your needs, but they work differently. Let’s break down the key distinctions!
Frequently Asked Questions
What is a Home Equity Loan?
Think of a home equity loan as getting a chunk of change upfront from your home. It’s different from a HELOC because you receive a one-time lump sum and start paying it back right away with fixed monthly payments that cover both the interest and the loan principal.
What is a HELOC?
Imagine a HELOC (Home Equity Line of Credit) as a credit card for your home. Just like a credit card, you have a set spending limit based on your home’s equity. You can withdraw money whenever you need it, and during the initial draw period, you’ll only pay interest on the amount you borrow. This lets you manage your finances and only pay for what you use.
Should I refinance my current mortgage, instead?
Hold on to your sweet mortgage rate! A cash-out refinance replaces your current mortgage with a new one, potentially wiping out that incredible interest rate you snagged. For many homeowners, this wouldn’t be ideal. That’s where HELOCs and home equity loans come in – they allow you to access your home equity without sacrificing your existing mortgage.
Where can I use the money?
Need money for that dream renovation, your child’s college tuition, or unexpected medical bills? HELOCs and home equity loans can unlock the equity in your home and turn it into cash for various goals. Think of it like an ATM for your home, giving you the flexibility to cover expenses, consolidate high-interest debt, or even secure a down payment on a new place while you sell your current one.
How much equity can I get?
Some lenders might offer home equity loans with a loan-to-value (LTV) ratio as high as 95%. This means you could potentially borrow a larger sum of money based on your home’s value. Let’s say your home is appraised at $700,000 and you still owe $400,000 on your mortgage. With a 95% LTV, you might qualify for a home equity loan of up to $265,000 ($700,000 x 95% – $400,000).
Salvador Martinez2025-05-02Trustindex verifies that the original source of the review is Google. I had a great experience working with Victor. He was patient and responsive to any questions. Victor worked diligently and frequently checked in with us to ensure the process went smoothly. We were able to close on time and highly recommend Victor. Hayley Searight2025-04-29Trustindex verifies that the original source of the review is Google. Victor was a great help every step of the way. He spoke with my husband and I multiple times as we made our decisions regarding the financing of our loan. Once we were underway, Victor worked efficiently to ensure we were able to have our loan processed timely. He was readily available via text, phone call, or email even at late or early hours. We look forward to working with him in the future. Christopher Houghtaling2025-04-11Trustindex verifies that the original source of the review is Google. Honest, Straightforward and No Nonsense, we had a easy refinance experience on our home here in CA and would recommend Victor to our friends Isaac B2025-03-14Trustindex verifies that the original source of the review is Google. As daunting as refinancing might seem, Victor walks you through and explains every step. I was aware of all my options and any questions I had were quickly answered. Victor ensured the process was smooth and extremely efficient. I would not hesitate to reach out to for any future services. Thank you Victor! Denise Garrett2025-03-03Trustindex verifies that the original source of the review is Google. My experience working with Victor goes beyond the highest level of professionalism! He was absolutely wonderful and so very amazing to work with! He went above and beyond as it relates to ensuring that everything was properly prepared through completion! I couldn't be more satisfied with his service! Outstanding!!!! Mimi Lee2025-01-17Trustindex verifies that the original source of the review is Google. Had to refinance my home and Victor was on top of everything. Tx so much🙏 Joanna Goertz2024-12-11Trustindex verifies that the original source of the review is Google. My husband and I have used Victor and OnPoint for several and look to him when we've refinanced or purchased property. His knowledge, experience, professionalism and timelines are all reasons why we continue to come back! Rebels Sales & Marketing2024-12-09Trustindex verifies that the original source of the review is Google. I had an outstanding experience with on point mortgage pro. They were honest, punctual, and provided a highly professional service. I appreciate their commitment to quality and would definitely recommend them to others!" ron caringal2024-11-29Trustindex verifies that the original source of the review is Google. Victor was easy to deal with. He made the effort to exhaust all possible means for him to meet my target loan amount given the predicament. Gary Chisholm2024-10-18Trustindex verifies that the original source of the review is Google. Victor was great and always avalible