Home Equity Loans: Keep your low-rate first mortgage and get the cash you need

Planet Home Lending’s Home Equity loan helps you get the cash you need to:

  • Consolidate higher interest rate debt
  • Remodel your home
  • Pay for education
  • Anything you want

A Home Equity Loan can be a great fixed rate option if interest rates have risen since you got your current mortgage loan and you want to put your home equity to work. You can cash out home equity and still keep the low interest rate on your first mortgage loan.

Borrow loan amounts from $25,000 up to $350,000 based on your home’s equity. Then use that money any way you like. We work hard to help you move in the right direction to meet your financial goals.

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FAQs

What’s a Home Equity Loan? What does it mean to take out a Home Equity Loan?

A Home Equity Loan, sometimes called a junior lien, 2nd lien, or second mortgage, is a home loan you take out based on how much equity you have in your home.

It’s also called a second mortgage loan because you keep your original “first” mortgage loan (your primary mortgage). A Home Equity Loan uses your home as collateral to secure the loan.

We know Home Equity Loans, seconds and firsts, and we're dedicated to clarity. Reach out any time and we'll walk you through your options: 888-966-9044.

What is home equity?

Home equity is the difference between what your home is worth and what you owe for it. Start with your current home value and subtract what you owe in outstanding principal on all your mortgage loans. Current customers can log into Planet's Loan Servicing portal to check current outstanding loan balance 24/7.

We believe you should know your options and feel at ease and empowered throughout the process. Our Home Loan professionals can do a quick home value estimate so you know how much home equity might be available to you. We're here to help: 888-966-9044.

How much can I borrow with a Home Equity Loan?

You can generally borrow up to 85% of your home equity on your primary (main) or second home and up to 80% on your investment property. That percentage includes the combined amount of both your first mortgage loan and Home Equity Loan. The higher your credit score, the more you can typically borrow.

For example, if your home is valued at $100,000 you may be able to borrow up to 85%, which is $85,000. Let’s say you owe $60,000 on your first mortgage loan. Then, you generally could borrow another $25,000 with a Home Equity Loan. That would take you to $85,000 in total mortgages, or 85% of $100,000.

What are Home Equity Loan interest rates today?

Home Equity Loan rates change every day and sometimes every hour. We work hard to bring you great rates. Call us to find out where Home Equity Loan interest rates are today and what your monthly payments could be: 888-966-9044.

How long do I have to repay a Home Equity Loan?

You can choose between a 15- or 30-year mortgage loan. The 30-year mortgage loan will have a lower monthly principal and interest payment, but you’ll pay less over the life of the loan with a 15-year mortgage loan.

How do I get a Home Equity Loan How does a Home Equity Loan work?

The process is a lot like the way you got your first mortgage loan. We look at your income, employment, assets, credit, and more. Then, we underwrite your home loan. After closing, you get cash in a lump sum, all at once.

Call Planet Home Lending and we'll walk you through it. We're here to help: 888-966-9044.

What’s the difference between a a home equity loan and line of credit (HELOC)?

Planet Home Lending’s Home Equity Loan has a consistent fixed rate. You know your monthly principal and interest payment will not change over the life of your home loan.

Home equity lines of credit (HELOCs) typically have adjustable rates, so your payments can rise when interest rates rise. Early on, many HELOCs only ask that you pay the interest owed and not the principal. When the full repayments kick in, the payment increase can be a financial shock.

With a Home Equity Loan, you get the funds right away. With a HELOC, you must write a check or make a withdrawal to get the funds.

Our home loan professionals can explain the crucial differences and help you to decide the best fit for your situation.

Is a Home Equity Loan a second mortgage or 2nd Lien?

Yes, Home Equity Loans are second mortgages and 2nd liens. Home Equity Loans are called 2nd liens or second mortgages because they come second to your first mortgage loan.

What’s the difference between a Home Equity Loan and a cash-out refinance?

Both home loans let you pull cash from your home’s equity. With a Home Equity Loan, you get to keep your low interest-rate first mortgage loan. The Home Equity Loan lets you access any home equity you’ve built since you took out your first mortgage loan.

A cash-out refinance pays off your original first mortgage loan and replaces it with a new first mortgage loan, which may come with a different interest rate depending on the current market.

Which costs less, a Home Equity Loan or a cash-out refinance?

There’s no right answer to this question. It depends on what the interest rate is for the two mortgage loans on any given day.

Planet Home Lending offers both so we can show you the options. No matter which you choose, we’re committed to answering every question and considering each variable with you.

Contact a Home Loan Professional now at: 888-966-9044.

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Can I get a Home Equity Loan with bad credit?

A few credit blemishes generally won’t stop you from getting a Home Equity Loan. We make home loans to customers with low credit scores every day — because, at Planet, you’re more than just a number.

Can I get a Home Equity Loan without my spouse?

If your spouse is on the title of your home, you will need their signature.

Can I get a Home Equity Loan on an investment (rental) property?

Yes, you can get a Home Equity Loan on a rental property. You can also get a cash-out refinance loan or a purchase home loan for a real estate investment property.

Contact a Home Loan Professional now to chat about investment property loans: 888-966-9044.

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Can I get a Home Equity Loan to buy another home?

It depends. You can typically use one to buy a rental property, vacation home, or second home. Want to buy a new home and quickly sell the home you’re in? A Bridge Loan might be a better tool for that transaction.

Call and talk to us about what you want to do, and we’ll explain clearly what your options are and how we can help: 888-966-9044

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Can I get a Home Equity Loan on a condominium?

Yes, in general, you can get a Planet Home Lending Home Equity Loan on a condominium.

Can I get a Home Equity Loan on a manufactured home?

Yes, in general, you can. Our Manufactured Home Loan professionals can explain which houses are eligible.

Can you refinance a Home Equity Loan?

In general, if your credit is solid and you’ve made your first mortgage loan payments on time, you may be able to refinance. This varies from case to case, so your best bet is to call us and discuss your options: 888-966-9044

If I already have a Home Equity Loan, can I refinance my first mortgage without refinancing the Home Equity Loan?

In many cases that is possible, but the Home Equity Loan does add some complications. Fortunately, our mortgage professionals can help answer all your questions.

When does it make sense to get a Home Equity Loan?

Every customer is unique. That’s why we view every borrower and their needs through an individual lens. We want to be your mortgage lender for life.

A Home Equity Loan might be right for you if you want to:

  • Keep the low interest rate on your first mortgage loan
  • Consolidate high-cost credit cards or personal loans
  • Make home improvements to potentially raise your home’s value
  • Lock in a fixed interest rate
  • Spread the cost of large expenses, like college tuition, over several years
  • Cover large, unexpected expenses
  • Purchase rental properties
  • Fund a new business

Does a Home Equity Loan fit into your financial planning for tomorrow? Call and talk to a Home Loan professional now: 888-966-9044

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Planet’s Home Equity Loan 2nd Lien (Home Equity Loan) is available to customers with an existing first-position mortgage lien. This program requires the existing first-position mortgage lien to remain; this program is not a refinance. Only available for primary residences in AL, CO, IN, KY, LA, MD, and NV. Available for primary residences and second homes in MO. Available for primary residences, second homes, and investment properties in AZ, CA, FL, GA, NC, NJ, PA, and VA.