What is a home equity loan?

A home equity loan is a one-time installment loan that lets you use the equity in your home as collateral. It’s sometimes referred to as a home equity installment loan or HELOAN for short. Home equity loans offer several benefits, including a fixed interest rate that may be lower than other types of loans, and a regular monthly payment. This gives you a predictable repayment schedule for the life of the loan, up to 30 years.

Requirements to get a home equity loan

To qualify for a home equity loan, you’ll need a credit score of 660 or higher. U.S. Bank also looks at factors including:

  • the amount of equity you have in your home
  • your credit score and history
  • your debt-to-income (DTI) ratio
  • your income history

Find home equity loan rates1 by location.

The rates shown are the current national average. Enter your location details for rates in your area.

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10-year term home equity loan rate

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15-year term home equity loan rate

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Rates shown for loans in the amount of $50,000 – $99,999 up to 60% loan to value (LTV), and for customers with automatic payments from a U.S. Bank personal checking or savings account with a FICO score of 730 or higher.1 Rates may vary by region and are subject to change.

We’re sorry.

U.S. Bank currently doesn’t offer home equity products in your location. An alternative option, cash-out refinance, is available in all 50 states.

If you’re interested in this or other financing options, please call us at 855-815-8894.

Take the next step: Get prequalified.

Prequalification helps you see how much you might be able to borrow, without affecting your credit score.

Prequalify

Popular uses for home equity loans

Home improvements

For one-time home remodel projects, a home equity loan is a great option. 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, a home equity loan could help you consolidate your debt into a single, more manageable payment at a competitive rate.

Weddings and celebrations

A large one-time expense can be difficult to cover from savings alone. A home equity loan can be one of the most affordable ways to fund a large expense while sticking to a fixed amount.

Education

When student loans aren’t available or aren’t enough, a home equity loan can be another
solution to help you fund your or a loved one’s higher education.
 

Explore more home equity and home improvement tools.

Calculate your potential home equity payment.

Home equity loans and lines of credit can be great ways to fund major purchases. Use our rate and payment calculator to find out what your home equity monthly payment may be.

Calculate your payment

Estimate your home improvement project cost.

Our home improvement calculator can help you estimate what your home remodeling project could cost. Get your personalized estimate by answering a few questions.

Get an estimate

Obtaining a Loan Estimate for a home equity loan

A Loan Estimate provides important details about your loan, including the estimated interest rate, monthly payment and total closing costs. Get a Loan Estimate without completing a full loan application by speaking to a banker.

Call 800-642-3547

Get answers to frequently asked questions about home equity loans.

You can apply for a home equity loan online, by calling 800-642-3547 or by visiting a U.S. Bank branch.

You should be prepared to provide an estimate of your home’s value as well as other supporting documents. See more information on how to get a home equity loan.
 

There are two key differences between a home equity loan and a HELOC: how credit is offered and the type of interest rate. A home equity loan gives you a one-time lump sum that you repay with a fixed interest rate. A HELOC gives you a line of credit that you can use as needed during a certain timeframe. It typically has a variable interest rate.

Interest on a home equity loan may be tax deductible.2 Consult your tax advisor regarding tax deductibility.

Typically, you can borrow 80% of the equity in your home. You can estimate your home equity by taking the current market value of your home and subtracting you the amount you owe on your mortgage. The amount you can borrow also depends on other factors like your income and credit history.

Yes. Home equity loans are often referred to as second mortgages since they offer fixed rates and a steady repayment schedule like traditional mortgages. A traditional mortgage is what gets you into the home initially, whereas a home equity loan is taken out after you’ve accumulated equity in the home.

To qualify for a home equity loan, you’ll need a credit score in the good to excellent range and sufficient equity in your home. The following ranges from TransUnion® will give you an idea of where you fall:

  • 850 – 781: Excellent
  • 780 – 720: Very good
  • 719 – 658: Good
  • 657 – 601: Fair
  • 600 – 300: Poor
     

Home equity loans have terms up to 30 years.

Yes. If you have enough equity in your home, you can use the money from a home equity loan to buy a second house. However, you should weigh the risks and benefits carefully before using equity to buy another home.

If you live in a state with a U.S. Bank branch, have equity in your home that does not exceed the loan-to-value (LTV) ratio of 80% and have good credit, you may qualify for a home equity loan.

A home equity loan is a type of second mortgage. It’s similar to a traditional mortgage in that you take out a predetermined amount at a fixed interest rate. Once you receive the money, you’re expected to start paying it back in monthly installments, based on a set schedule.

No. Home equity loans do not have closing costs.

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Disclosures

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.

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  1. Home Equity Loan: As of April 21, 2023, the fixed Annual Percentage Rate (APR) of 7.50% is available for 10-year second position home equity installment loans $50,000 to $99,999 with loan-to-value (LTV) of 60% or less. Rates may vary based on LTV, credit scores or other loan amount. In order to receive the lowest rate advertised, a set-up of automatic payments from a U.S. Bank personal checking or savings account is required but neither are required for loan approval. Customers in certain states are eligible to receive the preferred rate without having automatic payments from a U.S. Bank personal checking or savings account. Loan payment example: on a $50,000 loan for 120 months at 7.50% interest rate, monthly payments would be $593.51. Payment example does not include amounts for taxes and insurance premiums. The monthly payment obligation will be greater if taxes and insurance are included and an initial customer deposit may be required if an escrow account for these items is established. Home equity loans not available for properties held in a trust in the states of Hawaii, Louisiana, New York, Oklahoma and Rhode Island. Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Property insurance is required. Other restrictions may apply.

  2. For U.S. Bank:

    U.S. Bank and its representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.

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The Consumer Pricing Information disclosure lists fees, terms and conditions that apply to U.S. Bank personal checking and savings accounts and can be obtained by visiting a branch or calling 800-872-2657.