How to Secure a Home Equity Loan

Home equity loans act as a second mortgage, providing the funds you need for big purchases, home renovations, college tuition, and more. These loans are calculated based on the market value of your home minus the principal owed on your mortgage. 

Where to Get a Home Equity Loan

The first step to securing a home equity loan is picking a lender. Before picking a lender, consider if a home equity loan is right for you. You’ll need a minimum amount of home equity, a good credit score, and reliable income as regulated by your lender. These factors impact your loan amount, interest rate, and APR, determining where you should get your home equity loan. Horizon Bank offers low-interest rates and additional benefits for ideal applicants.

Steps to Get a Home Equity Loan

• Apply for the loan. After choosing a lender, you'll have to apply for a loan. Most home equity loan applications are online, making the application process simple and quick.
• Meet with a loan advisor. Once you’ve applied, you’ll meet with a loan advisor. Make sure you bring tax documents, current mortgage, proof of income, and additional relevant materials. The loan advisor will assess your eligibility for a loan and inform you of interest rates and APR. If you’re eligible, they will appraise and underwrite your loan. 
• Sign your loan. After meeting with an advisor and agreeing to the loan terms, you will close on your loan and receive your loan funds!

Home equity is the difference between your home's current value and what you still owe on your mortgage. You can use that equity to access funds through a home equity loan or home equity line of credit (HELOC) for projects like home improvements, debt consolidation, or education expenses. A home equity loan provides a lump sum with fixed monthly payments, while a HELOC allows you to borrow and repay funds as needed.

With home values remaining strong, many homeowners have built significant equity, making now a great time to explore their borrowing options. Depending on your goals, refinancing may also be worth considering. Refinancing can potentially lower your interest rate, reduce your loan term, or help you achieve other financial objectives.

Whether you're considering a home equity loan, HELOC, or refinancing, Horizon Bank can help you determine the best solution for your needs. Contact our team today to learn more or view our current home equity rates.

Talk to a Horizon loan advisor today or complete a home equity loan application. 

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