Home Equity Loan
A home equity loan is a fixed-rate, lump-sum loan secured by home equity. Unlike a HELOC's revolving credit, it provides a single disbursement with predictable fixed monthly payments over 5-30 years.
Key Features
- Fixed interest rate and monthly payments
- Lump-sum disbursement at closing
- Fixed repayment term (5-30 years)
- Creates second mortgage lien
- Amount: appraised value - existing mortgage
vs. HELOC
- Fixed rate vs. variable rate
- Lump sum vs. revolving credit
- Fixed payments vs. variable payments
- Better for known one-time expenses
- Both require FL homestead compliance
Florida Requirements
Both spouses must sign, doc stamp and intangible tax apply, TILA/RESPA compliance, 3-day rescission right (refinance), and FL usury law compliance.
Related Terms
- Equity — Home equity
- Encumbrance — Second mortgage
- Closing — Loan closing
Barnes Walker Real Estate
Barnes Walker's attorneys review home equity loan terms and ensure homestead compliance for Florida borrowers. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC