Home Equity Loan Key Features
- Fixed Interest Rate: Fixed monthly principal and interest payments for predictable budgeting.
- Lump-Sum Disbursement: Receive funds upfront for debt consolidation, home renovations, or major expenses.
- Predictable Schedule: Typical terms span 5, 10, 15, or 20 years.
Home Equity Loan Term Comparison Table ($60,000 @ 7.75%)
| Term Length | Monthly Payment | Total Repayment | Total Interest Paid |
|---|---|---|---|
| 5 Years (60 Mos) | $1,209.68 | $72,581 | $12,581 |
| 10 Years (120 Mos) | $720.57 | $86,468 | $26,468 |
| 15 Years (180 Mos) | $564.91 | $101,684 | $41,684 |
Frequently Asked Questions
What is a Home Equity Loan?
A home equity loan is a second mortgage that distributes a single lump-sum payout backed by your home’s equity, with fixed monthly payments and a fixed interest rate.
What is the difference between a Home Equity Loan and a HELOC?
A Home Equity Loan provides a lump-sum payout upfront with a fixed interest rate and fixed monthly payments. A HELOC is a revolving line of credit with a variable interest rate and an interest-only draw period.