You can tell if you have equity in your home by comparing what your home is worth today with how much you still owe on it. Equity is the difference between your home’s current market value and your remaining mortgage balance.

How to check

Find your home’s estimated current value using a recent appraisal, a real estate estimate, or comparable home sales.

Look up your current mortgage payoff balance on your latest statement or online account.

Subtract what you owe from what the home is worth.

For example, if your home is worth $300,000 and you owe $200,000, you likely have $100,000 in equity.

You can tell if you have equity in your home by comparing what your home is worth today with how much you still owe on it. In simple terms, equity is the difference between your home’s current market value and your remaining mortgage balance.

Using our calculator

We also have a free equity calculator below this FAQ section to help you estimate your home equity more quickly. It can give you a helpful starting point before you speak with a lender!

Credit score is only one part of qualifying for a HELOC – other factors include your debt-to-income ratio, income, and how much equity you have in the home. Typically, our home equity programs need a minimum credit score of 620 to qualify. Credit score in the high 500s or low 600s? There could still be financing options for you!

Don’t hesitate to reach out to one of our licensed mortgage consultants since there may be a cash out refinance program that has lower credit score requirements and can still help you access the equity you need.

You can apply for a home equity loan online or over the phone. Our application process is designed to be simple, and a loan specialist will review your information and guide you through the next steps.

What to expect

After you submit your application, your dedicated loan officer will review your income, property details, and available equity. They’ll also match you with the best program to fit your needs and help you unlock the most equity at the best rates and terms. If we need any additional documents, we’ll let you know.

If your application is approved, we’ll move forward with the remaining steps, which may include a property valuation, final underwriting, and closing.

How to get started

You can begin your application online at any time or call us to apply by phone. If you have questions along the way, our team is here to help.

Our home equity loan approval process includes an application, document review, underwriting, property valuation, and final approval. You can apply online or over the phone to get started. You could get cash out of your equity in a matter of weeks:

Typical steps

Determine eligibility. Lenders generally look at how much equity you have, your credit score, debt-to-income ratio, and income stability.

Send supporting documents. Common documents include proof of income, ID, and proof of homeownership such as a mortgage statement or property tax bill.

Underwriting review. The lender verifies your information, checks your credit, and confirms that the loan amount fits your available equity.

Home valuation and title review. The lender typically orders an appraisal or other valuation and reviews the property title.

Final approval and closing. If everything checks out, you get a loan estimate, sign the final documents, pay any closing costs, and receive the funds.

A HELOC gives you access to funds over time, while a home equity loan gives you a single lump sum. HELOCs usually have variable rates, and home equity loans usually have fixed payments.

Main difference

HELOC: flexible borrowing, variable payments, good for ongoing or uncertain expenses.

Home equity loan: one-time payout, fixed payments, good for a specific known cost.

A HELOC may be a good fit if you want flexible access to your home equity with lower upfront costs. A refinance may be better if you want to replace your current mortgage and potentially lower your rate or simplify to one payment.

HELOC pros

You borrow only what you need, which can help keep interest costs down.

Closing costs are usually lower than a refinance.

You may be able to make interest-only payments during the draw period.

You keep your existing mortgage, which is helpful if you already have a low rate.

HELOC cons

The rate is usually variable, so your payment can rise if rates go up.

You may end up managing two payments: your mortgage and the HELOC.

When the draw period ends, payments can increase because principal repayment begins.

It can be tempting to borrow more than you planned because the line of credit stays open.

Refinance pros

You may get a lower interest rate on your main mortgage if current rates are favorable.

You usually have just one mortgage payment instead of a mortgage plus a second loan.

A refinance can let you reset the loan term or change the type of loan.

Cash-out refinance gives you a lump sum at closing, which is useful for one-time large expenses.

Refinance cons

Closing costs are usually higher than a HELOC’s.

You restart the mortgage clock, which can mean paying more interest over time.

If your current mortgage rate is already low, refinancing could make your overall rate worse.

It is less flexible if you only need part of the money now and the rest later.

 

Use our free home equity calculator below these FAQs to figure out how much equity you have and how much you can borrow as cash. We have several programs that will let you use your equity to pay off debt, including a HELOC or Cash Out Refinance. You can apply easily online or call us to get started. The loan process can take a matter of weeks, and you get a cash lump sum. You can use the funds to make payoff payments to your other lenders or for anything else you want.

Good reasons to do it

You may get a lower interest rate than credit cards or unsecured loans.

It can simplify several payments into one monthly bill.

A fixed-rate home equity loan gives you predictable payments, which can help with budgeting.

You can get equity out of your home without refinancing by using a home equity loan or a HELOC. A home equity loan gives you a lump sum with fixed monthly payments, while a HELOC works more like a revolving line of credit that you draw from as needed.

Main options

Home equity loan, also called a second mortgage, if you want one set amount upfront.

HELOC, if you want flexible access to funds over time.

Reverse mortgage, if you are 62 or older and want to tap equity without monthly loan payments.

Home equity agreement or investment, if you want cash now in exchange for a share of future home value.

A home equity loan lets you borrow a lump sum against the part of your home you already own, and you repay it in fixed monthly payments over a set term. If you own your home outright, the lender can still use the house as collateral, and you may be able to borrow up to a percentage of the home’s value, often around 80% to 85%, depending on the lender and your finances.

A simple example: if your home is worth $300,000 and a lender allows borrowing up to 80% of value, the maximum total debt secured by the house would be $240,000. With no mortgage balance, that could mean borrowing up to about $240,000, though actual limits depend on the lender.