Home Equity Loans
Made Simple
Home Equity Loan Benefits
Low Fixed Rates
Reinvest or Renovate
Pay Off Debt
Is A Home Equity Loan Right For You?
Have questions about your home equity loan options? Below are answers to some of the most common questions.
What is a home equity loan and how does it work?
A home equity loan allows you to borrow against the equity in your home. You receive a lump sum and repay it in fixed monthly installments over a set term. The loan uses your home as collateral, and the amount you can borrow depends on your equity and creditworthiness.
What are the eligibility requirements for obtaining a home equity loan?
Eligibility for a loan typically requires having at least 15-20% home equity, a solid credit score (usually 620 or higher), stable and verifiable income, and a debt-to-income (DTI) ratio within the range of 43-50%. Lenders may also consider additional factors, such as your employment history, cash reserves, and overall financial stability, to determine your ability to meet loan obligations. At Deal Street Capital, our team is here to simplify the process—contact us today, and we can quickly review your details and confirm your eligibility in just a few minutes, ensuring a seamless path to securing your loan.
How much can I borrow with a home equity loan?
The amount you can borrow with a home equity loan depends on your home’s value, how much equity you’ve built, and lender-specific limits. Typically, lenders allow you to borrow up to 80-85% of your home’s appraised value, minus your existing mortgage balance. For example, if your home is worth $400,000 and you owe $250,000 on your mortgage, you could potentially borrow up to $90,000. However, factors like your credit score, income, and debt-to-income (DTI) ratio can also impact the amount. Contact Deal Street Capital to get a personalized estimate and explore your options!
What are the current interest rates for home equity loans?
Interest rates for home equity loans depend on several factors, including your credit score, the loan amount, your home’s equity, and current market conditions. Typically, rates range from 6% to 12%, but borrowers with excellent credit and low debt-to-income ratios may qualify for lower rates. Additionally, fixed interest rates are common, meaning your monthly payment remains consistent over the life of the loan. Keep in mind that rates can vary by lender and may change based on economic trends. Contact Deal Street Capital for a customized quote and to learn about today’s competitive rates tailored to your situation.
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