Home equity loan
A fixed-rate lump sum from your home equity.
A home equity loan is a fixed-rate second mortgage that gives you one lump sum at closing and a predictable monthly payment over a fixed term. It's a good option when you know exactly how much you need and want the payment to stay the same for the life of the loan.
What is a home equity loan?
A home equity loan (sometimes called a "second mortgage") is a separate loan secured by your home, in addition to your existing first mortgage. It's issued at a fixed interest rate, delivered as a one-time lump sum, and repaid over a fixed term (typically 5, 10, 15, or 20 years).
Because it's a second lien behind your first mortgage, home equity loans usually carry a slightly higher rate than your primary mortgage — but they're typically much lower than credit cards, personal loans, or auto loans.
Home equity loan vs. HELOC vs. cash-out refinance
Home equity loan = fixed rate, fixed term, lump sum. Best when you know the exact amount you need. HELOC = variable rate, revolving line of credit. Best when you need ongoing flexible access. Cash-out refinance = replaces your first mortgage with a bigger one and takes the difference in cash. Best when refi rates are lower than your current first mortgage.
Belong Lending walks you through which of the three fits your situation before you commit — sometimes the answer is different than what you expected.
How much can you borrow?
Most home equity loans allow a combined loan-to-value (CLTV) of 80% – 90%. That means the total of your first mortgage plus the home equity loan cannot typically exceed 80% – 90% of your home's appraised value.
Key benefits
- Fixed interest rate for the life of the loan
- Predictable monthly payment
- Lump sum delivered at closing
- Fixed term (5, 10, 15, or 20 years)
- Often lower rate than credit cards or personal loans
Who this loan fits best
- Homeowners who need a fixed lump sum for a defined project
- Debt consolidation borrowers who want a predictable payoff schedule
- Anyone who prefers fixed monthly payments over a HELOC's variable-rate risk
Estimate your monthly payment
Home Equity Loan payment calculator
Estimate only. Actual rate, taxes, insurance, and mortgage insurance depend on your specific loan and property. Belong Lending confirms your exact payment at pre-approval.
Serving Detroit and surrounding Michigan communities
Belong Lending helps borrowers with Home Equity Loan loans across Detroit, Troy, Southfield, Ann Arbor, Flint, Livonia, Warren, Sterling Heights, Farmington Hills, Novi, Rochester Hills, Dearborn, and beyond — plus additional coverage throughout Wayne County, Oakland County, Macomb County, Washtenaw County, Livingston County, Genesee County. We also lend on eligible properties in Ohio, Florida, Georgia, and Texas.
Frequently asked questions
How is a home equity loan different from a HELOC?
A home equity loan gives you a fixed-rate lump sum at closing and a predictable payment over a fixed term. A HELOC is a variable-rate revolving credit line you can draw against as needed during the draw period. Home equity loans are better for one-time defined expenses; HELOCs are better for ongoing or unpredictable needs.
How much can I borrow with a home equity loan?
Most home equity loans allow up to 80% – 90% combined loan-to-value (CLTV). If your home is worth $350,000 and you owe $200,000 on the first mortgage, an 85% CLTV home equity loan could offer up to $97,500 ($350,000 × 85% − $200,000).
Are home equity loan rates fixed?
Yes. Home equity loans carry a fixed interest rate for the life of the loan, so your monthly payment does not change. This is the primary reason many borrowers choose a home equity loan over a HELOC.
Can I have both a first mortgage and a home equity loan?
Yes. A home equity loan is a "second lien" that sits behind your existing first mortgage. You keep making payments on your first mortgage and separately make payments on the home equity loan.