A home equity loan, also known as a second mortgage, enables you as a homeowner to borrow money by leveraging the equity in your home. The loan amount is dispersed in one lump sum and paid back in monthly installments. The loan is secured by your property and can be used to consolidate debt or pay for large expenses, such as home improvements, education or purchasing a vehicle. Both the interest rate and monthly payments are fixed, ensuring a predictable repayment schedule.
Here are some of the most commonly asked questions.
Frequently asked questions
Although some lenders charge fees for home equity loans, at U.S. Bank, there are no upfront fees or closing costs.
Your equity is the share of your home that you own versus what you owe on your mortgage. For example, if your home is worth $300,000 and you have a mortgage balance of $150,000, then you have equity of $150,000, or 50 percent.
You’ll make fixed monthly payments until the loan is paid off. Most terms range from five to 20 years, but you can take as long as 30 years to pay back a home equity loan.
You don’t have to pay off your home equity loan or other liens to list your home for sale. At the sale’s closing, creditors holding liens on your home’s title will be paid off from the proceeds of the sale.
The interest cost on a home equity installment loan may be tax deductible1, but it is always wise to check with your tax advisor for details.
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U.S. Bank and its representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.
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The Consumer Pricing Information disclosure lists fees, terms and conditions that apply to U.S. Bank personal checking and savings accounts and can be obtained by visiting a branch or calling 800-872-2657.
Home Equity Loan:As of March 15, 2024, the fixed Annual Percentage Rate (APR) of 7.65% is available for 10-year second position home equity installment loans $50,000 to $99,999 with loan-to-value (LTV) of 60% or less.Rates may vary based on LTV,credit scoresor other loan amount.In order toreceive the lowest rate advertised, a set-up of automatic payments from a U.S.Bank personal checkingor savingsaccount is required but neither are required for loan approval. Customers in certain states are eligible to receive the preferred rate without having automatic payments from a U.S.Bank personal checking or savings account. Loan payment example: on a $50,000 loan for 120 months at 7.65% interest rate, monthly payments would be $597.43. Payment example does not include amounts for taxes and insurance premiums. The monthly payment obligation will be greater if taxes and insurance are included and an initial customer deposit may be required if an escrow account for these items is established. Home equity loans not available for properties held in a trust in the states of Hawaii, Louisiana, NewYork, Oklahoma and RhodeIsland. Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Property insurance is required. Other restrictions may apply.
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Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.
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