Home Equity Loan

Singe Family Home, Condo, 1-4 Unit Multi Family

Owner-Occupied, Second Home, Investment Home

🔶 Loan Factory

80+ Home Equity Lenders
Variety of Home Equity Programs

🔶 Pre-Approval

Even if you have been declined by another lender, we can review your approval options through our network of multiple lenders

🔶 One Credit Pull

Minimize credit inquiries
Compare multiple lenders using a single credit report

🔶 Free Consultation

Terry Kwon
Loan Officer
(631) 624-4480

Over the past several years, home prices in the United States have risen significantly, increasing the amount of home equity many homeowners have built. By leveraging this equity, homeowners can access cash for a variety of purposes, including debt consolidation, business funding, education expenses, home improvements, and more.

 

While current mortgage interest rates have declined from their peak levels in 2023, they remain considerably higher than the historic lows seen in 2021. As a result, many homeowners who already have a first mortgage with a very low interest rate are choosing to utilize home equity programs instead of refinancing their existing mortgage. This allows them to access their home’s equity while preserving the favorable rate on their current first mortgage.

 

🔹 Why Use Your Home Equity?

 

The equity you have built through home appreciation and mortgage repayment can be used for a variety of financial needs.

 

✅ Debt Consolidation

✅ Home Remodeling and Repairs

✅ Real Estate Purchases

✅ Business Funding

✅ Education Expenses

✅ Investment Opportunities

✅ Emergency Cash Needs

 

 

🔹Example

 

Home Value: $800,000

Current Mortgage Balance: $400,000

Available Equity: $400,000

 

 

Potential Additional Loan Amount:

    • Approximately $80,000 – $320,000
    • LTV 60% – 90%
    • Subject to program guidelines and borrower qualifications.

 

 

🔹Interest Rates

 

While first mortgage rates are generally influenced by U.S. Treasury yields, Home Equity Loans (HELOANs) and Home Equity Lines of Credit (HELOCs) are primarily based on the Federal Funds Rate and Prime Rate, plus a lender margin.

 

As a result, home equity loan rates are generally higher than first mortgage rates.

 

 

🔹Repayment Terms

 

 

✅ 10 to 30-year terms available

✅ Fixed-Rate or Adjustable-Rate options

✅ Interest-Only payment options may be available depending on the program

Home Equity Loan(HELOAN) vs Home Equity Line Of Credit(HELOC)

Home Equity Loan
(HELOAN)

  • Minimum Credit Score: 620+
  • Lump-sum funding after approval
  • Funds cannot be reused once borrowed
  • Fixed monthly payments with a fixed interest rate
  • Ideal for large one-time expenses
  • Commonly used for debt consolidation and investment purposes
  • Interest Rate: Prime Rate + Margin
  • Repayment Term: 10 to 30 years
  • Interest rates and maximum loan-to-value (LTV) vary based on credit score

Home Equity Line of Credit
(HELOC)

  • Minimum Credit Score: 680+
  • Draw funds as needed during the draw period
  • Monthly payments vary based on the amount utilized
  • Interest is charged only on the amount borrowed
  • Greater flexibility in accessing funds
  • Commonly used for home improvements, emergency expenses, and business operating capital
  • Interest-only payment options may be available depending on the program
  • Interest Rate: Prime Rate + Margin
  • Repayment Term: 10 to 30 years
  • Interest rates and maximum loan-to-value (LTV) vary based on credit score

Home Equity Loan Programs:

QM Conventioal

  • Income Verification: Most recent 2 years of W-2s and tax returns
  • For borrowers with sufficient Debt-to-Income (DTI) ratios
  • Primary Residence, Second Home, and Investment Properties
  • Competitive Interest Rates
 
 
 
 
 

Fast HELOC Program

 

  • Funding in as little as 5 days
  • No Appraisal Required
    Automated Valuation up to $400,000.  Model (AVM) may be used instead of a traditional appraisal.
  • No Title Search Required
  • Automated title verification systems may be used in place of a traditional title search.
  • Flexible Options
  • Choose your loan amount, repayment term, fees, and interest rate options.
  • 5-Minute Pre-Approval
  • Competitive Interest Rates
Read More

Self-Employed & 1099 Independent Contractors

  • Even if your taxable income is low, you may qualify by using Bank Statements or a Profit & Loss Statement (P&L) to verify income.
  • Bank Statements: 12–24 Months
  • CPA-Prepared Profit & Loss Statement (P&L)
  • Strategies to Increase Qualifying Income for Mortgage Approval

DSCR Loan for Rental Investment Properties

  • No Personal Income Verification Required
  • Qualification Based on Rental Income
  • DSCR (Debt Service Coverage Ratio) ≥ 1.0
  • Maximum LTV: 65%–75% Based on property value and program guidelines
  • Repayment Terms: 10–30 Years

No Income

  • Owner -Occupied
  • LTV up to 60%
  • 700+ Credit Required
  • Single Family, Condo, 1-4 Multi Family Home
Read More

Inquiry for Home Equity & Line of Credit

Total Annual Household Income Based on Tax Returns

Milestone Point Inc. In partnership with Loan Factory Inc. (NMLS #320841)
Licensed Mortgage Loan Officer: Terry Kwon (NMLS #2620208)

Residential Mortgage Licensed: AL, CA, CO, GA, IL, ME, NJ, NV, OH, TX, VA, WA

Contact: (631) 624-4480
Email: terry@milestonepointinc.com
Milestone Point, Inc: 200 Garden City Plaza, Suite 215, Garden City, NY 11530

Loan Factory: 2195 Tully Road. San Jose, CA 95122

 

Disclaimer:
Loan approval is not guaranteed. Approval is subject to credit, income, assets, and other underwriting criteria.
Rates and terms are subject to change without notice.
Milestone Point Inc. partners with Loan Factory Inc. to provide access to multiple mortgage products.
All mortgage programs are offered through licensed mortgage brokers/loan officers registered with the NMLS.