Looking to tap into your home’s equity? Understanding the various types of home equity products available can help you make the right financial decision for your needs. Home equity loans and home equity lines of credit allow existing homeowners to borrow against the equity they’ve built in their property, often at competitive rates compared to other borrowing methods.
A home equity loan is a second mortgage that lets homeowners convert built-up equity into cash without refinancing or replacing their first mortgage. Your Rate Broker offers the full range of home equity products: home equity loans (HELOANs), home equity lines of credit (HELOCs), fixed-rate HELOCs, and DSCR home equity loans for real estate investors. American homeowners are sitting on $34.5 trillion in collective equity, with the average homeowner holding roughly $300,000 in tappable value. Home equity loan rates are significantly lower than credit cards and personal loans because the loan is secured by your home, making them the most cost-effective way to fund renovations, consolidate high-interest debt, invest in another property, or cover a major expense.
What sets Your Rate Broker apart is flexibility that banks can’t match. Most banks require a 700+ FICO to qualify for a home equity loan; Your Rate Broker approves home equity loan borrowers down to 600 FICO and accepts alternative income documentation including bank statement qualification for self-employed borrowers and DSCR-based home equity loans for investment properties. Loan amounts go up to $1,000,000 for both HELOCs and HELOANs across primary residences, second homes, and investment properties. Home equity is 10% of Your Rate Broker funded volume YTD in 2026 and rapidly growing as more homeowners discover the structural advantage of borrowing against equity instead of giving up the low interest rate on their first mortgage. Rates are subject to change daily based on market conditions.
Home equity programs are available in several types, each with unique features and benefits. Home equity interest rates vary by loan type, so it’s important to understand what each option entails before making a commitment. Click the links below to learn about each type of home equity loan Your Rate Broker offers, understand the pros and cons of each, and perform your own home equity loan comparison.
Unlike a lump sum, a home equity line of credit (HELOC) is like a credit card but comes with much lower interest rates in comparison. As a revolving line of credit, a HELOC lets you pull funds as needed during a predetermined draw period. This flexibility makes HELOCs ideal for ongoing expenses or projects with unpredictable costs, though they typically come with variable interest rates, so they can change over time depending on market conditions. Benefits include lines of credit of up to $1,000,000 for primary residences, second homes, and investment properties, with appraisals often waived for properties with a valid AVM.
A traditional home equity loan provides a lump-sum payment that you’ll repay over a fixed term with consistent monthly payments. This option works well for one-time expenses like home renovations or debt consolidation since you’ll receive all funds upfront and benefit from predictable payments with fixed interest rates. Benefits include loan amounts of up to $1,000,000 for primary residences, second homes, and investment properties, with qualification based on tax returns and W-2s or bank statements for self-employed borrowers.
For investment property owners, a DSCR home equity loan offers funding based on the property’s income rather than your personal income. This makes it an excellent choice for real estate investors who want to leverage equity in their rental properties without the traditional income verification process. Benefits include loan amounts up to $500,000 and cashout up to 80% of the property’s value.
A fixed-rate HELOC can give you the best of both worlds by combining the flexibility of a traditional HELOC with the predictability of fixed interest rates. This hybrid option allows you to lock in home equity rates on portions of your borrowed amount while maintaining access to your credit line, giving you both stability and flexibility in managing your home equity borrowing.
Self-employed individuals or those with seasonal or non-traditional income sources can benefit from bank statement home equity loans and lines of credit. These loans use bank statements rather than tax returns and pay stubs to verify income, making them accessible to entrepreneurs, freelancers, and business owners who might not be able to qualify for conventional loans due to complex tax situations. Access a lump sum with a bank statement home equity loan or set up a line of credit for ongoing expenses with a bank statement HELOC.
Seniors aged 62 and older may consider a reverse mortgage to turn home equity into cash without monthly payments. This mortgage loan is repaid when you sell your home, move out, or pass away. This option provides supplemental retirement income while allowing homeowners to remain in their homes.
A reverse second mortgage offers an alternative for seniors who already have an existing mortgage. This option allows homeowners to access their equity without disturbing their primary mortgage, providing additional retirement funds while maintaining their current mortgage arrangement.
A 1st lien HELOC allows homeowners to access their equity through a revolving line of credit that takes first position on the property—replacing or refinancing an existing mortgage. In addition to being a flexible refinance tool, some 1st lien HELOCs can also be used to purchase a home, offering an alternative to traditional mortgage financing. This makes them especially appealing to buyers seeking interest-only payments during the draw period or those looking for a more dynamic way to manage cash flow. With competitive rates and the ability to borrow, repay, and re-borrow funds, a 1st lien HELOC provides both flexibility and control for a wide range of financial goals.
When comparing home equity loan options, consider your financial goals, comfort with variable interest rates, and how long you plan to stay in your home. Before deciding, review current home equity loan rates and consider consulting with a mortgage professional. Our team can help you understand how a home equity loan works and the different types of home equity loans so you can find the solution that best fits your financial situation. You can even track your application and manage documents easily through the Your Rate Broker.
Home equity programs can be used on just about any home equity whether it is a primary residence, second home, or investment property.
As a rule of thumb, most home equity loans require a traditional interior/exterior appraisal performed by a licensed appraiser, while most home equity lines of credit do not. As a leading HELOC lender, we use an Automated Valuation Model (AVM) and a Property Condition Report (PCR) to establish your home’s value, saving you time and money. If the AVM is able to deliver the desired confidence score, then the appraisal is waived.
