What is a home equity loan?

A home equity loan, sometimes referred to as a home equity installment loan, can be a great way to consolidate debt or pay for major expenses. A home equity loan offers a fixed rate, a steady repayment schedule, and potential tax advantages.1 A fixed rate and predictable monthly payment can help you budget as you work toward your financial goals.

Home equity loan rates2

  • 10-year term

  • 5.49

    %APR

  • 15-year term

  • 5.74

    %APR

Rates shown for loans in the amount of $50,000-$250,000 up to 70% LTV, and for U.S. Bank Consumer Checking Package customers with a FICO score of 730 or higher2.

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Benefits of a home equity loan

Convenient access to your funds

Funds are available in one lump sum and can be accessed from your checking or savings account. Funds can be used immediately to make a purchase, consolidate debt, or any other reason you need them for.

Affordable monthly payments

With competitive fixed rates, your monthly payment will stay constant for the life of your loan – which can last up to 30 years. The interest you pay may even be tax deductible.

No up-front costs or fees

There are no required application fees or closing costs for a home equity loan, and the origination fee is optional, making it convenient to borrow what you need now and pay it back over time.

What could you do with a home equity loan?

Home improvements

For one-time home remodel projects, a home equity loan is worth considering. Not only are you improving your home, you’re reinvesting the money back into your property.

Debt consolidation

If debt management has become a burden, consider using a home equity loan to consolidate your debt into a single, more manageable payment at a competitive rate.

Vehicle purchase

As an alternative to a traditional auto loan, a home equity loan may have a lower rate and can be used to finance any type of vehicle.