For Homeowners

Home Equity Loan

Have goals like consolidating debt, or paying for college or home improvements? A Home Equity Loan from Rocket Mortgage® is a way to get the cash you need – without giving up a low interest rate on your existing mortgage.
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Is a Home Equity Loan for you?

You Don’t Want To Refinance

A Home Equity Loan is a second mortgage. That means no changes to your first mortgage and its interest rate.

You Need A Lump Sum

And have paid down your mortgage enough to take cash out starting at $45,000 and up to $500,000.1

Legal Disclosures

1Home Equity Loan product requires full documentation of income and assets, credit score and max loan-to-value (LTV), combined loan-to-value (CLTV), and home equity combined loan-to-value (HCLTV) ratios. Requirements were updated 2/5/2024 and are tiered as follows: 680 minimum FICO with a max LTV/CLTV/HCLTV of 80%, 700 minimum FICO with a max LTV/CLTV/HCLTV of 85%, and 740 minimum FICO with a max LTV/CLTV/HCLTV of 90%. Your debt-to-income ratio (DTI) must be 50% or below. Valid for loan amounts between $45,000.00 and $500,000.00. Product is a second standalone lien and may not be used for piggyback transactions. Product not available on Schwab products. Guidelines may vary for self-employed individuals. Some mortgages may be considered “higher priced” based on the APOR spread test. Higher priced loans are not allowed on properties located in New York. Additional restrictions apply. This is not a commitment to lend.

Your Budget Has Room

You’ll have a second mortgage payment in addition to your first mortgage. Because a Home Equity Loan has a fixed interest rate, the payment amount won’t change.
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Guidelines for this loan

If your details are close to these guidelines, we encourage you to connect with an expert. Even if a Home Equity Loan isn't right for you, we have other options that could be.

Credit

You'll need a credit profile of 680 or above. The better your credit, the more cash you may be able to access.
About Credit

Equity

You need enough equity in your home to take out at least $45,000.2
About Equity

Debt

Less than 45% of your income should be going to pay debt.
About Debt

Closing Costs

Because a Home Equity Loan is a second mortgage, there will be similar fees, usually 2-6% of the loan amount.
About Closing Costs

Comparing Home Equity Loans

Home equity loans and a cash-out refinance are both ways to use your home to reach financial goals. If you're not sure which one makes sense for you, our Home Loan Experts can help.

Interest Rate

Mortgage Payments

Length of Loan

Closing Costs

Home Equity Loan

Interest Rate

Likely Higher

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Mortgage Payments

Two Monthly Payments

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Length of Loan

10, 15, 20 or 30-Year Term

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Closing Costs

Yes

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Interest Rate

Likely Lower

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Mortgage Payments

One Monthly Payment

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Length of Loan

From 8 & Up To 30-Year Terms

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Closing Costs

Yes

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Cash-Out Refinance

Interest Rate

Likely Higher

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Mortgage Payments

Two Monthly Payments

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Length of Loan

10, 15, 20 or 30-Year Term

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Closing Costs

Yes

undefined

Interest Rate

Likely Lower

undefined

Mortgage Payments

One Monthly Payment

undefined

Length of Loan

From 8 & Up To 30-Year Terms

undefined

Closing Costs

Yes

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 Connect With An Expert

Estimate And Explore

Calculators are a greay way to learn and see what's possible.

Mortgage Calculator

Estimate your monthly home loan payment, including taxes and insurance.

Home Equity Calculator

Learn how much cash you have in your home based on its value and what you still owe.

Get More In-Depth Details

Articles that give you more information about Home Equity Loans and how they work.
A Home Equity Loan can be a great way to fund improvements to your home, like the new lawn and landscaping around this stately red brick home.

6-Minute Read

When Is A Home Equity Loan A Good Idea?

This young Asian couple looking at remodeling plans took out a second mortgage to fund the improvements.

9-Minute Read

What Is A Second Mortgage And How Does It Work?

Thinking about remodeling their kitchen with a Home Equity Loan, a young couple enjoy a happy and playful moment.

8-Minute Read

Using a Home Equity Loan For Your Remodel

While drinking a glass of orange juice with a bowl of cereal, a black man reads about consolidating debt using a home equity loan on his phone.

7-Minute Read

Home Equity Loans For Debt Consolidation

A Home Equity Loan can be a great way to fund improvements to your home, like the new lawn and landscaping around this stately red brick home.

6-Minute Read

When Is A Home Equity Loan A Good Idea?

This young Asian couple looking at remodeling plans took out a second mortgage to fund the improvements.

9-Minute Read

What Is A Second Mortgage And How Does It Work?

Thinking about remodeling their kitchen with a Home Equity Loan, a young couple enjoy a happy and playful moment.

8-Minute Read

Using a Home Equity Loan For Your Remodel

While drinking a glass of orange juice with a bowl of cereal, a black man reads about consolidating debt using a home equity loan on his phone.

7-Minute Read

Home Equity Loans For Debt Consolidation

A Home Equity Loan can be a great way to fund improvements to your home, like the new lawn and landscaping around this stately red brick home.

6-Minute Read

When Is A Home Equity Loan A Good Idea?

This young Asian couple looking at remodeling plans took out a second mortgage to fund the improvements.

9-Minute Read

What Is A Second Mortgage And How Does It Work?

Thinking about remodeling their kitchen with a Home Equity Loan, a young couple enjoy a happy and playful moment.

8-Minute Read

Using a Home Equity Loan For Your Remodel

While drinking a glass of orange juice with a bowl of cereal, a black man reads about consolidating debt using a home equity loan on his phone.

7-Minute Read

Home Equity Loans For Debt Consolidation

Frequently Asked Questions

Answers to questions about this loan we’ve heard from people like you.
 Home Equity Loans: A Complete Guide

Discover what your home can do for you.

Connect With An Expert

1Home Equity Loan product requires full documentation of income and assets, credit score and max loan-to-value (LTV), combined loan-to-value (CLTV), and home equity combined loan-to-value (HCLTV) ratios. Requirements were updated 2/5/2024 and are tiered as follows: 680 minimum FICO with a max LTV/CLTV/HCLTV of 80%, 700 minimum FICO with a max LTV/CLTV/HCLTV of 85%, and 740 minimum FICO with a max LTV/CLTV/HCLTV of 90%. Your debt-to-income ratio (DTI) must be 50% or below. Valid for loan amounts between $45,000.00 and $500,000.00. Product is a second standalone lien and may not be used for piggyback transactions. Product not available on Schwab products. Guidelines may vary for self-employed individuals. Some mortgages may be considered “higher priced” based on the APOR spread test. Higher priced loans are not allowed on properties located in New York. Additional restrictions apply. This is not a commitment to lend.

2Home Equity Loan 10 Year: For example, the payment on a $70,000, 10-year fixed-rate loan at 9.375% (9.958% APR) with an LTV of 80% is $965.36. Points due at closing are 0.00% ($0). Taxes and insurance not included. Home Equity Loan 20 Year: For example, the payment on a $70,000, 20-year fixed-rate loan at 9.50% (9.77% APR) with an LTV of 80% is $699.10. Points due at closing are 0.00% ($0). Taxes and insurance not included.