About Home Equity Loans
A home equity loan, also known as a second mortgage, enables homeowners to borrow against the equity they have accumulated in their property. The loan is typically provided as a lump sum, and the borrower pays it back in fixed monthly installments over a predetermined period. The interest rates on home equity loans are often fixed, providing stability for budget-conscious homeowners.
About HELOCS
A home equity line of credit (HELOC) functions similarly to a credit card. Instead of receiving a lump sum, borrowers are granted access to a revolving line of credit they can draw from as needed. HELOCs usually have variable interest rates, meaning the rates can fluctuate over time.
HELOC rates are often tied to the prime rate, making them more volatile in changing economic conditions. Factors that affect HELOC rates include the amount of home equity, the borrower's credit score, and the bank's individual prime rate.
Benefits
Predictable and often low interest rates
Usually low monthly payments
Borrowing flexibility for HELOC
Requirements
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Equity of at least 15-20%
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A debt-to-income ratio below 50%
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A credit score of 620 or more
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Proof of stable income
Service Areas
Trusted Mortgage Solutions Near You
Everest Lending proudly serves clients across Pennsylvania with a full range of mortgage and lending solutions. Whether you’re purchasing a new home, refinancing, or securing funding for a property investment, our trusted team is here to guide you every step of the way. And since we’re local, we can even attend closings in person to ensure everything goes smoothly.