How does a Home Equity Loan work?

Here’s how a Home Equity Loan from Rocket Mortgage works: 1. You’ll connect with a Home Loan Expert who’ll learn about your goals and help you understand if a Home Equity Loan is right for you. 2. A third-party appraiser will determine the value of your home. 3. You’ll close on your loan and get a lump-sum payout—anywhere from $45,000 ($61,000 if you live in Iowa), up to $500,000. 4. You’ll make monthly payments at a fixed interest rate until the loan is paid off.

Am I eligible for a Home Equity Loan?

You’re eligible if you meet these requirements: You have enough equity in your home to take out at least $45,000. You have a credit score of 680 or above. The higher your credit score, the more cash you might be able to take out. You have a maximum debt-to-income (DTI) ratio of 45%.

Home Equity Loan

Tap into your home’s equity – without giving up a low rate on your current mortgage. See what a Home Equity Loan from Rocket Mortgage® can unlock for you.¹

Explore my options

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Let your home help with what’s next

Turn your equity into cash

Get your funds as a lump sum, starting at $45,000 and up to $350,000

Keep your current rate

It’s a different loan, so your current mortgage and its interest rate will stay the same

Explore my options

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Discover what’s possible

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What would you do with an extra $500 a month?

Rocket Mortgage clients save an average of $535 a month by consolidating debt using their home's equity. ³

Estimate my savings

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Not sure how to access your home’s equity?

We can help. We’ll walk you through it. No pressure, just a simple review to help you understand your options.

Calculate my equity

Check my equity options

Explore your options

Considering both a Home Equity Loan and a cash-out refinance? Let’s take a look at some of the key differences.

Term length

Mortgage payments

Home Equity Loan

Term length

10 or 20 years²

Mortgage payments

2 separate payments

Term length

8 – 30 years

Mortgage payments

1 single payment

Learn more

Cash-out refinance

Term length

10 or 20 years²

Mortgage payments

2 separate payments

Term length

8 – 30 years

Mortgage payments

1 single payment

Learn more

Home Equity Loan

Cash-out refinance

Term length

10 or 20 years²

8 – 30 years

Mortgage payments

2 separate payments

1 single payment

Learn more

Connect with an expert

Frequently asked questions

We know you have questions, and we’re here to answer them

Home equity is the difference between your home’s value and what you still owe on your mortgage.

For example, if your home is worth $200,000 and your mortgage balance is $150,000, your equity is $50,000.

Estimate your equity by subtracting what you owe on your mortgage from what you could sell your home for.

Keep in mind that you might not be able to take out the full amount of your equity. You may be required to leave a percentage of your equity in your home (often 20%).

If you’d like help understanding your equity, connect with us for an Official Mortgage Review^®.

Here’s how a Home Equity Loan from Rocket Mortgage works:

You’ll connect with a Home Loan Expert who’ll learn about your goals and help you understand if a Home Equity Loan is right for you.
A third-party appraiser will determine the value of your home.
You’ll close on your loan and get a lump-sum payout—anywhere from $45,000 ($61,000 if you live in Iowa), up to $500,000.¹
You’ll make monthly payments at a fixed interest rate until the loan is paid off.

You’re eligible if you meet these requirements:

You have enough equity in your home to take out at least $45,000.
You have a credit score of 680 or above. The higher your credit score, the more cash you might be able to take out.
You have a maximum debt-to-income (DTI) ratio of 45%.

Yes! Your current mortgage doesn’t have to be with Rocket Mortgage in order to get a Home Equity Loan with us.

You can use a Home Equity Loan for almost any purpose – paying for home improvements or renovations, consolidating debt, or covering costs like school tuition. How you use the funds is up to you.

Any time you open a new 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.

Learn more about home equity loans

Curious? Let’s chat

Every question you have is important – that’s why we’ll answer them 24/7

You’ve invested in your home – let it return the favor

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Important legal disclosures

Nationstar Mortgage LLC (d/b/a Mr. Cooper) and Rocket Mortgage, LLC are separate companies uniting under the same parent organization.

Refinancing may cause finance charges to be higher over the life of the loan.

¹Home Equity Loan product requires full documentation of income and assets, credit score and max loan-to-value (LTV), combined loan-to-value (CLTV), and home equity combined loan-to-value (HCLTV) ratios. Requirements were updated 11/19/25 and are tiered as follows: 680 minimum credit score with a max LTV/CLTV/HCLTV of 80%, 700 minimum credit score with a max LTV/CLTV/HCLTV of 85%, and 740 minimum credit score with a max LTV/CLTV/HCLTV of 90%. Your debt-to-income ratio (DTI) must be 50% or below. Valid for loan amounts between $45,000.00 and $500,000.00 (minimum loan amount for properties located in Michigan is $10,000.00). Product is a second standalone lien and may not be used for piggyback transactions. Product not available on Ameriprise products. Guidelines may vary for self-employed individuals. Some mortgages may be considered “higher priced” based on the APOR spread test. Higher‑priced loans in the State of New York are subject to additional regulatory requirements. Additional restrictions apply. This is not a commitment to lend.

²Home Equity Loan 10 Year: For example, the payment on a $70,000, 10-year fixed-rate loan at 9.375% (9.958% APR) with an LTV of 80% is $965.36. Points due at closing are 0.00% ($0). Taxes and insurance not included. Home Equity Loan 20 Year: For example, the payment on a $70,000, 20-year fixed-rate loan at 9.50% (9.77% APR) with an LTV of 80% is $699.10. Points due at closing are 0.00% ($0). Taxes and insurance not included.