Home Equity Loan
One lump sum, a fixed payment, and your first mortgage left exactly where it is. A home equity loan — a closed-end second mortgage, sometimes written HELOAN — is the certainty option among the three ways to reach your equity.
Scope. Available in California only, whether the property is the home you live in or an investment property.
At a glance
- Structure
- Closed-end second
- Payment
- Fixed
- Scope
- California only
- Lender panel
- 20+
Scope. Available in California only, whether the property is the home you live in or an investment property.Work out the available equity
The three routes, in one paragraph
Certainty, flexibility, or consolidation. That is the whole choice, and which one is right depends on what the money is for and whether your first mortgage is worth protecting.
Who this fits
You know exactly what you need and you need all of it now
You want a payment that does not move
Your first mortgage is on terms worth keeping
A HELOC's variable rate and repayment cliff are risks you would rather not carry
You are funding one defined thing — a renovation with a fixed quote, a down payment, a debt consolidation
Who this does not fit
You are spending in stages. You pay interest on the whole sum from day one here, whether or not you have used it. A HELOC charges only on what you draw.
You do not yet know the amount. Guessing high costs you interest; guessing low means going back for a second facility.
Your equity is thin. There is a ceiling on total borrowing against the property, and a small second is rarely worth its closing costs.
Your first mortgage is unremarkable and the balance is small. A cash-out refinance into one loan may be simpler.
The property is outside California.
How qualification works
Equity first — your existing mortgage balance plus the new second, measured against the appraised value. That sets the ceiling.
Then income, debt, and credit
Then income and debt, then credit. Second-lien lending carries a high credit bar, because the lender sits behind your first mortgage and recovers second if anything goes wrong.
Documentation is broadly what a full-documentation file needs. We are a brokered business and place the file from a panel of 20+ lenders.
LTV & Cash-Out Calculator
Work out the available equity
Projected combined LTV
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Fill in the property value, the existing liens and the cash-out you want. The LTV updates as you type.
- Property value
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- Existing liens
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- Requested cash-out
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- Equity left
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- Projected combined balance
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For illustrative and educational purposes only. Results produced by this calculator perform arithmetic based solely on numbers you enter and do not reflect actual loan offers, interest rate quotes, or commitments to lend. Actual loan terms, payments, interest rates, and approval depend on complete underwriting, credit review, property valuation, and lender guidelines. Loankey.io arranges loans through third-party lenders; loans are not funded directly by Loankey.io.
Frequently Asked Questions
How is this different from a HELOC?
A home equity loan is one fixed sum with a fixed payment. A HELOC is a revolving line, usually at a variable rate, with a draw period that ends and a payment that typically jumps when it does. Certainty versus flexibility.
Does my first mortgage change?
No. It stays exactly as it is. That is the main reason to choose a second over a refinance.
Do I pay interest on the whole amount?
Yes, from day one, whether or not you have spent it. If that sounds wrong for your situation, you probably want a HELOC.
Is the rate fixed?
That is the product's defining feature — a fixed sum on a fixed payment.
Can I get one on a rental property?
Second-lien placement here is California only, whether the property is owner-occupied or a rental.
Can the lender freeze it?
No. Unlike a line of credit, the money is advanced at closing. There is nothing to freeze.
What can I use it for?
Anything. The lender does not restrict the use.
What is the risk I should be clearest about?
It is a lien against your home, and it sits behind your first mortgage. That is why the terms are better than unsecured borrowing, and it is why a payment you cannot sustain is a serious problem rather than an inconvenience.
What happens next
You are here
Home Equity Loan
A fixed second for a lump sum without touching the first.
If the money is funding the down payment on a rental.
Request a Scenario Analysis
Send the current value, your first mortgage balance, and the amount you need. If a line of credit would suit you better than a fixed second, that is what we will say.
Nothing on this page or website constitutes an offer of credit, a rate quote, or a commitment to lend. All loans are arranged through third-party lenders and are subject to full application, credit approval, income/asset verification, property appraisal, and underwriting. Terms and availability are subject to change without notice. Loankey.io is a licensed real estate broker; loans are arranged, not made. Investor and business-purpose lending nationwide. Owner-occupied home loans in California.