Home Equity Loans
A lump sum. A fixed rate. One predictable payment.
A home equity loan (HELOAN) gives you a lump sum secured by your home's equity, repaid over a fixed term at a fixed rate, separate from your first mortgage. It's a strong fit when you know exactly how much you need and want the certainty of a fixed payment.
Who this is for
Is this your loan?
Homeowners who need a specific amount and prefer predictable payments.
Not sure? That's what we're here for. We price every eligible program against this one, so the comparison is done for you.
How does a HELOAN work?
A home equity loan (HELOAN) gives you a lump sum secured by your home's equity, repaid over a fixed term at a fixed rate, separate from your first mortgage. Your existing rate stays exactly where it is.
What does a HELOAN include?
- Fixed rate and fixed monthly payment
- Lump-sum funding delivered at closing
- Keeps your existing first mortgage untouched
- Common uses: renovations, debt consolidation, education, major purchases
Who is a HELOAN best for?
Best for: homeowners who need a specific amount and prefer predictable payments. If you'd rather draw as you go, a HELOC is the revolving alternative.
What are the three ways to use home equity with the TW Team?
- HELOAN (this page): a lump sum at a fixed rate, with a full application and an in-house underwriter reading your file.
- HELOC: a revolving line you draw from as you go, with the same full application through our team.
- Digital HELOC: a fully online line of credit. Apply in about five minutes, decided online, with funding in as few as five days. The fastest of the three.
Home Equity Loans FAQs
Asked constantly. Answered honestly.
What is the difference between a HELOC and a HELOAN?
A HELOC (Home Equity Line of Credit) is a revolving credit line you draw from as needed and repay over time, with interest charged only on what you use. A HELOAN (Home Equity Loan) delivers your equity as a single lump sum at a fixed rate and fixed monthly payment. Both are second liens that leave your existing first mortgage untouched.
How much can I borrow against my equity?
Most lenders allow borrowing up to a combined loan-to-value (CLTV) of 80 to 90% of the home's value, which includes the first mortgage and any other home-secured debt. The specific limit depends on credit profile, income, and the lender's guidelines.
What can I use a home equity loan for?
Common uses include home improvements, debt consolidation, education expenses, or major purchases. Because the home secures the loan, lenders often offer lower interest rates than unsecured credit cards or personal loans, but the home is at risk if the loan isn't repaid.
Is home equity loan interest tax-deductible?
In some cases, interest on a HELOC or home equity loan may be tax-deductible if the funds are used to buy, build, or substantially improve the home that secures the loan. Tax rules are specific and change periodically, so this is not tax advice; consult a tax professional for guidance on a specific situation.
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