Home Equity Loan: Fixed Rate, Lump Sum Cash
Access your Bergen County home equity with a fixed-rate second mortgage. Keep your existing low first mortgage rate. Max 85% CLTV. Typical rates 8-10%.
NMLS 1577754 • Licensed in NJ, NY, PA, CT, MD, OH, GA
How Home Equity Loans Work
The Basics
- Second mortgage - Doesn't replace your first mortgage
- Fixed rate - Predictable payments for entire loan term
- Lump sum - Receive all cash at closing
- 5-30 year terms - Most common: 10-15 years
- Max 85% CLTV - Combined loan-to-value ratio
Example Calculation
Home Value:
$750,000
First Mortgage Balance:
-$300,000
Max Home Equity Loan (85% CLTV):
(750K × 85%) - 300K =
$337,500
💡 Key Advantage: Preserve Your Low First Mortgage Rate
If you locked in a 3-4% mortgage rate in 2020-2021, a home equity loan lets you keep that low rate while accessing equity. Cash-out refinance would replace your low rate with today's 6-7% rates.
Current Rates & Terms
Bergen County Home Equity Loan Rates (October 2025)
8.5-10.0%
Fixed rate for loan term • Based on Prime + 1-3%
Typical Loan Amount
$50K-$250K
Common Terms
10-15 years
Closing Costs
$500-$2,000
Lower Closing Costs Than Refinance
Home equity loans typically cost $500-$2,000 to close (appraisal, title search, recording fees). Cash-out refinance costs 2-5% of loan amount ($12K-$30K on $600K loan).
Faster Processing
Close in 2-4 weeks vs 30-45 days for refinance. Simpler underwriting since you're not replacing first mortgage. Existing mortgage payment history often sufficient.
Home Equity Loan vs HELOC
Home Equity Loan
Ideal Scenarios:
- • Home renovation project
- • Debt consolidation
- • Major purchase
- • Known expense amount
HELOC
Ideal Scenarios:
- • Multi-phase renovation
- • College tuition (yearly)
- • Emergency fund access
- • Flexible draw timeline
Bottom Line: Choose home equity loan for predictable fixed payments and lump sum needs. Choose HELOC for flexibility and ongoing access to funds.See detailed comparison →
Calculate Your Available Home Equity
See how much you can borrow with a home equity loan or HELOC. Get personalized rate quotes and compare options.
Jimmy Joseph MBA • NMLS 1577754 • jjoseph@cmghomeloans.com