For homeowners looking to access their equity without the uncertainty of variable interest rates, a Home Equity Loan (HELOAN) offers a simple and predictable way to secure funding. Unlike a HELOC, which operates as a revolving line of credit, a HELOAN provides a lump sum payout at closing with a fixed interest rate, allowing you to borrow with confidence and financial stability.
What is a HELOAN?
A HELOAN is a home equity loan that lets you borrow up to $500,000 in a single lump sum, secured by your home. Unlike a HELOC, where your payment fluctuates based on usage, a HELOAN offers:
- A One-Time Lump Sum: Receive up to $500,000 at closing.
- Fixed Interest Rate: Your rate will never change, keeping your monthly payments predictable.
- No Need to Refinance Your First Mortgage: Keep your low mortgage rate while accessing extra funds.
- Structured Repayment Plan: Pay it down like a traditional loan, with a set schedule.
If you prefer financial stability and long-term planning, a HELOAN ensures that your payments remain the same, even if market rates rise.
HELOAN vs. HELOC: Which Is Right for You?
Both HELOANs and HELOCs allow homeowners to use their home equity, but they serve different financial needs.
HELOAN (Home Equity Loan)
- Fixed interest rate—your payment stays the same.
- Lump sum payout at closing (borrow up to $500K).
- Predictable, structured repayment plan.
- Ideal for large, one-time expenses like home renovations or debt consolidation.
HELOC (Home Equity Line of Credit)
- Variable interest rate—payments can fluctuate.
- Access funds as needed, up to an approved limit.
- Only pay interest on the amount you use.
- Best for ongoing expenses or flexible borrowing needs.
A HELOAN is the right choice if you need a specific amount of money upfront and want the security of a fixed payment schedule.
How Can You Use a HELOAN?
Since a HELOAN provides immediate access to funds, it’s perfect for large, planned expenses that require a lump sum investment:
- Home Renovations & Upgrades – Increase your property’s value with remodeling projects.
- Debt Consolidation – Pay off high-interest credit cards or personal loans.
- Education & Tuition Costs – Fund college tuition or professional certifications.
- Major Purchases – Finance a vehicle, second home, or investment.
- Business Investment – Use funds to start or grow your business.
With a lower interest rate than credit cards or personal loans, a HELOAN is a smart way to finance major expenses while keeping your finances on track.
Ready to Put Your Home’s Equity to Work?
Request a free consultation today and get a complimentary Home Equity & Debt Analysis. Discover how to maximize your home’s value and achieve your financial goals with confidence.
