Home Equity Loan

A home equity loan may be the perfect solution if consolidating debt, starting a home renovation, or making a significant purchase is on your New Year's resolution list.

What is a Home Equity Fixed-Rate Loan?

A home equity installment loan is a type of loan that allows you to borrow a lump sum of money using your home's equity as collateral. Home equity loans typically have fixed interest rates, meaning that your monthly payments will remain the same over the life of the loan, up to 30 years.

The amount you can borrow with a home equity loan is generally limited to a percentage of your home's equity, usually up to 80%. Home equity loans are used for a variety of reasons, including debt consolidation to simplify monthly payments, home improvements, education expenses, and emergency expenses.

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What are the benefits of a home equity loan?

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Fixed terms

A home equity loan is worth considering if you have a large one-time expense, or if you want to consolidate debt and focus on paying it off. It offers fixed rates and terms with a steady repayment schedule for the life of the loan.

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Lower rates

Home equity loans typically have lower rates than other types of loans because the loan is secured by your home's equity making it a cost-effective way to borrow and pay off other high-interest debt. 

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Ease of application

The application process is simple and straightforward and you can apply at your convenience. Before you begin your application, it may be helpful to take a minute and review our home equity document checklist.

How long does it take to get a home equity loan?

Get started today

Complete a basic application.

Apply online in minutes, call 888-873-2640, or visit a Horizon Bank branch.

Work with an Advisor.

An experienced Horizon Loan Advisor is here to guide you through the process. 

Close on your loan.

Once your loan is approved your Loan Advisor will schedule your closing.

What can you use a home equity loan for?

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    Home Improvement

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

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    Major Purchases

    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.

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    Debt Consolidation

    If debt management has become a burden, a home equity loan may be the solution to help you consolidate payments from higher-interest rates for a  more manageable payment.

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    Education

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

 

 

Ready to apply for a home equity loan?

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Get answers to your frequently asked questions about home equity loans.

How to Secure a Home Equity Loan

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Home equity loans act as a second mortgage, providing the funds you need for big purchases, home renovations, college tuition, and more. These loans are calculated based on the market value of your home minus the principal owed on your mortgage. 

Where to Get a Home Equity Loan

The first step to securing a home equity loan is picking a lender. Before picking a lender, consider if a home equity loan is right for you. You’ll need a minimum amount of home equity, a good credit score, and reliable income as regulated by your lender. These factors impact your loan amount, interest rate, and APR, determining where you should get your home equity loan. Horizon Bank offers low-interest rates and additional benefits for ideal applicants.

Steps to Get a Home Equity Loan

  • Apply for the loan. After choosing a lender, you'll have to apply for a loan. Most home equity loan applications are online, making the application process simple and quick.
  • Meet with a loan advisor. Once you’ve applied, you’ll meet with a loan advisor. Make sure you bring tax documents, current mortgage, proof of income, and additional relevant materials. The loan advisor will assess your eligibility for a loan and inform you of interest rates and APR. If you’re eligible, they will appraise and underwrite your loan. 
  • Sign your loan. After meeting with an advisor and agreeing to the loan terms, you will close on your loan and receive your loan funds!

Home equity is the difference between your home's current value and what you still owe on your mortgage. You can use that equity to access funds through a home equity loan or home equity line of credit (HELOC) for projects like home improvements, debt consolidation, or education expenses. A home equity loan provides a lump sum with fixed monthly payments, while a HELOC allows you to borrow and repay funds as needed.

With home values remaining strong, many homeowners have built significant equity, making now a great time to explore their borrowing options. Depending on your goals, refinancing may also be worth considering. Refinancing can potentially lower your interest rate, reduce your loan term, or help you achieve other financial objectives.

Whether you're considering a home equity loan, HELOC, or refinancing, Horizon Bank can help you determine the best solution for your needs. Contact our team today to learn more or view our current home equity rates.

Talk to a Horizon loan advisor today or complete a home equity loan application. 

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