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
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.