FOR HOME OWNERS
Cashout 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.
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.
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.
Guidelines for this Loan
If your details are close to these guidelines, we encourage you to apply or contact us. Even if you don’t qualify for an adjustable-rate mortgage, we could have other options for you.
Credit
Closing Costs
Estimate and Explore
Calculators are a great way to learn and see what’s possible.
Down Payment Calculator
Learn how much cash you need to buy the home in your mind.
Comparing Home Equity Loans
Everyone’s situation is different. What might be right for one person might not be right for you. Apply or contact us – it’s the best way to explore your unique options.
| Home Equity Loan | Cash-Out Refinance | |
|---|---|---|
| Interest Rate | Likely Higher | Likely Lower |
| Mortgage Payments | Two Monthly Payments | One Monthly Payment |
| Length of Loan | 10, 15, 20 or 30-Year Term | From 8 & Up To 30-Year Terms |
| Closing Costs | Yes | Yes |
Get More In-Depth Details
Articles that give you more information about this loan and explain how mortgages work.
Frequently Asked Questions
Answers to questions about this loan we heard from people like you during research.
What’s home equity?
Home equity is the difference between what your home is worth and what you owe on your mortgage balance. If you could sell your home today for $200,000, and your mortgage balance is $150,000, you have $50,000 in home equity. Learn more by reading What Is Home Equity And How Can I Access It?
How do I know how much home equity I have?
You can estimate your home equity by finding out what your home would sell for, and then subtracting what you still owe on your home. For example, if you could sell your home today for $200,000 and your mortgage balance is $150,000, you have approximately $50,000 in home equity.
However, when taking cash out you may not be able to access all your home equity. You may be required to leave a percentage of your equity in your home, often 20%.
Want to feel confident about how much equity you have? Contact us to get an Official Mortgage Review®.
How does a Home Equity Loan from Rocket Mortgage work?
Here’s what the process looks like:
First you’ll connect with one of our Home Loan Experts, who’ll learn about you and your goals. They’ll guide you through applying if a Home Equity Loan looks like the right choice for you.
Next an independent third-party appraiser will appraise the value of your home. After that, we’ll get working on your loan.
Just like other mortgages, you’ll close on your loan. You get a lump-sum payment after closing for the amount you’re taking out. The minimum is $45,000 ($61,000 if you live in Iowa), up to $500,000.1
All that’s left then is paying on your loan. Because our Home Equity Loan has a fixed interest rate, your payment amount stays the same until it’s paid off.
What can the funds from a home equity loan be used for?
Many borrowers use a home equity loan to pay for home improvements, consolidate debt or pay for school tuition. That said, you can technically use a home equity loan for anything.
Will taking out a home equity loan hurt my credit score?
Any time you open a new loan, like a home equity loan, your credit score may drop slightly. The drop will likely be temporary and your score may even increase after opening the loan since your total available credit will go up.
