Home equity lending
Comparing home equity options
Not sure which home equity option is right for you? Let's compare them.As your home builds equity, it can become a powerful financial tool. Home equity lets you tap into the value you’ve built into your home, with flexibility and customized guidance.
Benefits of accessing your home’s equity
Use your home equity to cover renovations, consolidate debt, fund education, or make major purchases.
You can choose how you want to borrow—whether you’d prefer a lump sum or ongoing access to funds.
Choose fixed rates for predictable payments, or variable rates for flexibility.
Apply online and use our calculators and comparison tools, or get advice from a Truist Mortgage professional.
Comparing home equity products
Best for ongoing, unpredictable expenses or phased home projects.
- Min/max loan amount
- $10,000 to $1,000,000
- Lien position
- First or Second
- Closing costs
- Lender or borrower paidDisclosure 4
- Loan terms
- Variable: 10-year draw with 20-year repaymentDisclosure 1
- Fixed: 6 months to 30 yearsDisclosure 2
Best for one-time expenses or projects like renovations or debt consolidation.
- Min/max loan amount
- $25,000 to $500,000
- Lien position
- Second
- Closing costs
- Lender paid
- Loan terms
- Fixed: 5 to 30 years
Best for one-time larger expenses, debt consolidation, or refinancing your mortgage.
- Min/max loan amount
- Varies based on a maximum loan-to-value ratio and/or dollar amount maximum.
- Lien position
- First
- Closing costs
- Borrower paid
- Loan terms
- Fixed: 10 to 30 years
- Adjustable: 30-year term (with an initial fixed-rate period)
Calculate how much equity you have in your home.
This calculator is made available by one or more third-party service providers. It is not intended to be an advertisement for a product or service at any of the terms used herein. It is not intended to offer any tax, legal, financial, or investment advice. All examples are hypothetical and are for illustrative purposes. Truist Financial Corporation (“Truist”) and its affiliates do not provide legal or tax advice. Truist cannot guarantee that the information provided is accurate, complete, or timely. Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre- and/or after-tax investment results. Truist makes no warranties with regard to this calculator or the results obtained by its use. Truist disclaims any liability arising out of your use of, or any tax position taken in reliance on, this calculator. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Frequently asked questions about using your home’s equity
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Both a Home Equity Loan and a HELOC allow you to borrow against your home’s equity, but they work differently depending on how you access your funds and how flexible your payments need to be.
Home Equity Loan (HELOAN):
With a Home Equity Loan, you receive your funds as a one-time lump sum and repay the loan in fixed monthly payments over a set term. This option works well if you know exactly how much you need upfront and prefer predictable payments.
Home Equity Line of Credit (HELOC):
A HELOC is a revolving line of credit with a draw period, allowing you to borrow what you need, when you need it, up to your approved limit. During the draw period, you have flexible payment options including interest-only payments, and you can pay down the principal at any time.
A cash-out refinance lets you take out a new mortgage with updated terms to pay off an existing loan or access equity from a home you own outright. You receive cash based on your home’s value after closing expenses. You’ll still have just one monthly payment, with the flexibility to use the funds for things like home improvements, debt consolidation, or major expenses. You may even lower your interest rate if rates have decreased.
Home Equity Loan (HELOAN) and Home Equity Line of Credit (HELOC):
Home Equity Loans and Home Equity Lines of Credit typically require little to no waiting period, as long as you own your home and have sufficient equity. Some additional requirements may apply.
Cash-out refinance:
A cash-out refinance usually requires a longer ownership period. In most cases, you’ll need to own your home for at least six months and have at least 20% equity in your home.
It depends on the type of home equity option you choose.
Home Equity Line of Credit (HELOC): A HELOC is a separate loan from your mortgage. Your current mortgage will stay the same. You’ll make two payments: one for your mortgage and one for the HELOC (based on the amount you borrow).
Home Equity Loan (HELOAN): Like HELOC, a Truist Home Equity Loan is a standalone mortgage, separate from the existing mortgage. Your current mortgage won’t change, and you’ll make two monthly payments: one for your first mortgage and one for the Home Equity Loan.
Cash-out refinance: A cash‑out refinance replaces your current mortgage with a new loan that allows you to use a portion of your home’s equity to pay off eligible debts at closing and/or receive cash. You’ll have one monthly mortgage payment, though your loan amount, interest rate, or loan term may change.
It depends on the home equity solution you choose.
Home Equity Line of Credit (HELOC): A HELOC is a a revolving line of credit with a draw period, allowing you to borrow what you need, when you need it, up to your approved limit.
Home Equity Loan (HELOAN): You receive a one-time lump sum and pay it back over time with fixed interest.
Cash-out refinance: A cash‑out refinance replaces your current mortgage with a new loan that allows you to use a portion of your home’s equity to pay off eligible debts at closing and/or receive cash. You’ll have one monthly mortgage payment, though your loan amount, interest rate, or loan term may change.
A first lien is typically your primary mortgage. The first lien position is first in line for repayment—for instance, if you sell your home, your primary mortgage is repaid first.
A second lien is an additional loan, such as a Home Equity Loan (HELOAN) or a Home Equity Line of Credit (HELOC). When the property is sold, the second lien is repaid after the first lien is satisfied.
A cash-out refinance replaces your existing mortgage and becomes a new first lien.
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