The number of years it will take to pay off a loan. The loan term is used to determine the payment amount, repayment schedule and total interest paid over the life of the loan.
If you need a specific amount of money right away for large expenses and want a predictable monthly payment, a home equity loan could be the right option for you.
What is a home equity loan?
A home equity loan is secured by your home and enables you to access your available equity in the form of a single payout and a fixed interest rate with fixed monthly payments. Unlike a home equity line of credit (HELOC), your home equity loan proceeds are paid out as a one-time lump sum, and you can't borrow funds on the loan again, even if you repay them.
Home equity loans could be a good way to pay for home improvements or other large expenses, or to consolidate higher-interest rate debt (such as credit cards).Footnote 1
Want to view home equity loan features and HELOC features side by side? Compare a home equity loan vs. home equity line of credit
Note: A home equity loan is not available as a first mortgage or lien, and is not available on Glossary Term: investment or rental homes. If you need a fixed-rate loan to pay off your current mortgage or do not have a first mortgage, learn about mortgage refinancing.
You could get a reduction of up to 0.25% off your fixed interest rate:
You can get an idea of rates for the amount you're thinking about borrowing by using our home equity loan calculator.