Home Equity LoanFixed-Rate Second Mortgage in Paramus
Unlock your home equity with a fixed-rate second mortgage. Get funds upfront with predictable monthly payments. Perfect for major expenses and projects.
Why Choose a Home Equity Loan?
Fixed Rate Security
Unlike HELOCs with variable rates, your home equity loan rate never changes. Budget with confidence knowing your payment stays the same for 30 years.
Rate Protection:
Lock today's rate for life of loan
Lump Sum Funding
Receive your entire loan amount at closing. Perfect for large one-time expenses like renovations, tuition, or investment properties in Bergen County.
Immediate Access:
Full funds available at closing
Predictable Payments
Fixed principal and interest payments make budgeting simple. No surprises from rate adjustments or payment shocks common with credit lines.
Payment Stability:
Same payment for entire term
Keep First Mortgage
Preserve your low first mortgage rate while accessing equity. If you have a 3-4% rate from 2020-2021, don't lose it with a cash-out refinance.
Rate Preservation:
Keep existing low mortgage rate
Home Equity Loan vs. HELOC vs. Cash-Out Refinance
| Feature | Home Equity Loan | HELOC | Cash-Out Refi |
|---|---|---|---|
| Rate Type | Fixed | Variable | Fixed |
| Funds Access | Lump Sum | As Needed | Lump Sum |
| Payment Type | Fixed P&I | Interest Only | Fixed P&I |
| Keep 1st Mortgage | ✓ Yes | ✓ Yes | ✗ No |
| Closing Costs | $2-4K | $0.5-1.5K | $5-8K |
| Best For | Large One-Time Need | Ongoing Access | Rate Reduction |
When a Home Equity Loan Makes Sense:
- You have a low rate on your first mortgage (under 4.5%)
- You need a specific amount for a one-time expense
- You want predictable, fixed monthly payments
- You're concerned about rising interest rates
Top Uses for Home Equity Loans in Paramus
Major Home Renovations ($75,000 - $200,000)
Complete kitchen and bathroom remodels are the top use for Paramus home equity loans. With Bergen County contractors booking 3-6 months out, having funds ready upfront ensures your project stays on schedule.
Full Kitchen Remodel
Average cost: $95,000
Value added: $72,000
Master Suite Addition
Average cost: $125,000
Value added: $78,000
College Tuition Funding
With private universities costing $80,000+ annually, many Paramus families use home equity loans for education. The fixed rate beats variable Parent PLUS loans (currently 9.08%) and private student loans (14-16%).
4-Year Cost Comparison:
Private loan at 14%: $397,000 total paid
Parent PLUS at 9.08%: $365,000 total paid
Home equity at 7.49%: $347,000 total paid
Investment Property Down Payment
Use your Paramus home equity to purchase rental properties. Many investors target multi-family properties in Paterson or Passaic where $100,000 down buys a $400,000 property generating $4,500/month in rental income.
- Interest may be tax-deductible for investments
- Rental income often exceeds loan payment
- Build wealth through property appreciation
Debt Consolidation
Replace multiple high-interest debts with one fixed payment. The average Paramus household with $75,000 in credit card and auto debt saves $1,100/month by consolidating into a home equity loan.
Monthly Payment Comparison:
Credit cards + auto loans: $2,150/month
Home equity loan: $550/month
Monthly savings: $1,600
Qualify for Your Paramus Home Equity Loan
Requirements
- Credit Score: 620+ minimum, 680+ for best rates
Higher scores unlock lower rates and higher loan amounts
- Home Equity: 15%+ after loan
Max 85% combined loan-to-value ratio
- Income: Stable 2-year history
W-2 or self-employed with tax returns
- DTI Ratio: Under 43%
Including new loan payment
Simple Process
- 1Free Consultation (Same Day)
Review equity position and loan options
- 2Application (Day 1-2)
Online app with document upload
- 3Appraisal (Day 5-7)
Professional valuation of Paramus property
- 4Underwriting (Day 8-12)
Final approval and terms confirmation
- 5Closing (Day 14-21)
Sign docs and receive funds
Example Loan Scenarios for Paramus Homes
Starter Loan
$50,000
@ 7.49% = $350/mo
30-year term
Renovation Loan
$125,000
@ 7.49% = $874/mo
30-year term
Investment Loan
$200,000
@ 7.49% = $1,398/mo
30-year term
Access Your Paramus Home Equity Today
Get approved for your fixed-rate home equity loan in as little as 14 days
NMLS #1577754 | Equal Housing Lender | Licensed in NJ