There are three basic ways to access your home’s equity: a home equity line of credit, a home equity loan (also called a “second mortgage”), and a mortgage refinance that gives you cash when you close on your new mortgage.

Loan type

Key benefits

Worth considering if you...

Home equity line of credit
  • Borrow as needed, with rates typically lower than other loans or credit lines
  • Flexible repayment options with no up-front fees
  • Lock in a fixed rate on existing balances anytime
  • Interest may be tax deductible1
  • Are planning a major expense with multiple payments over time
  • Want to consolidate debt with flexibility to borrow more funds in the future
  • Want ongoing access to available funds for future needs

Home equity loan
  • One-time funding
  • Competitive fixed rates with no up-front fees
  • Enjoy the security of fixed rates and fixed payments for the life of your loan
  • Interest may be tax deductible1
  • Have a home-improvement project or other one-time expense of at least $25,000
  • Want to consolidate debt and stay focused on paying it off
  • Want to keep your current mortgage in place

Cash-out refinance
  • Refinance with access to cash at close
  • A great way to get new mortgage terms and borrow additional funds for one-time expenses at the same time
  • Interest may be tax deductible1
  • Owe more than $250,000 on your home
  • Have a reason to refinance (e.g. to get a better rate, shorten your loan term or switch to a fixed-rate mortgage)

Loan type

Home equity line of credit

Key benefits
  • Borrow as needed, with rates typically lower than other loans or credit lines
  • Flexible repayment options with no up-front fees
  • Lock in a fixed rate on existing balances anytime
  • Interest may be tax deductible1

Worth considering if you...
  • Are planning a major expense with multiple payments over time
  • Want to consolidate debt with flexibility to borrow more funds in the future
  • Want ongoing access to available funds for future needs

Loan type

Home equity loan

Key benefits
  • One-time funding
  • Competitive fixed rates with no up-front fees
  • Enjoy the security of fixed rates and fixed payments for the life of your loan
  • Interest may be tax deductible1

Worth considering if you...
  • Have a home-improvement project or other one-time expense of at least $25,000
  • Want to consolidate debt and stay focused on paying it off
  • Want to keep your current mortgage in place

Loan type

Cash-out refinance

Key benefits
  • Refinance with access to cash at close
  • A great way to get new mortgage terms and borrow additional funds for one-time expenses at the same time
  • Interest may be tax deductible1

Worth considering if you...
  • Owe more than $250,000 on your home
  • Have a reason to refinance (e.g. to get a better rate, shorten your loan term or switch to a fixed-rate mortgage)

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Disclosures

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.

  1. Footnote 1

    U.S. Bank and its representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.

    Return to content, Footnote 1

The Consumer Pricing Information disclosure lists fees, terms and conditions that apply to U.S. Bank personal checking and savings accounts and can be obtained by visiting a branch or calling 800-872-2657.

Home Equity Line of Credit: The Annual Percentage Rate (APR) is variable and is based upon an index plus a margin. The APR will vary with Prime Rate (the index) as published in the Wall Street Journal. As of December 19, 2024, the variable rate for Home Equity Lines of Credit ranged from 7.95% APR to 11.60% APR. Rates may vary due to a change in the Prime Rate, a credit limit below $50,000, a loan-to-value (LTV) above 60% and/or a credit score less than 730. A U.S. Bank personal checking account is required to receive the lowest rate, but is not required for loan approval. Clients in certain states are eligible to receive the preferred rate without having a U.S. Bank personal checking account. The rate will never exceed 18% APR, or applicable state law, or below 3.25% APR. Choosing an interest-only repayment may cause your monthly payment to increase, possibly substantially, once your credit line transitions into the repayment period. Repayment options may vary based on credit qualifications. Interest-only repayment may be unavailable. Loans are subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Credit line may be reduced or additional extensions of credit limited if certain circumstances occur.

An early closure fee of 1% of the original line amount, maximum $500, will apply if the line is paid off and closed within the first 30 months. Property insurance is required. Other restrictions may apply. An annual fee of up to $75 may apply after the first year and is waived or discounted with an existing U.S. Bank Platinum Checking Package or with enrollment in our Smart Rewards Program. Annual fees are assessed based on the tier in our Smart Rewards Program on your HELOC anniversary date. Please refer to your Smart Rewards terms and conditions for more information on tier assignment.

Home Equity Line of Credit – Fixed Rate Option: A maximum of three active Fixed Rate Options are permitted on a Home Equity Line of Credit. Property insurance is required. Other restrictions may apply.

Home Equity Loan: In order to receive the lowest rate advertised, a set-up of automatic payments from a U.S. Bank personal checking or savings account is required but neither are required for loan approval. Customers in certain states are eligible to receive the preferred rate without having automatic payments from a U.S. Bank personal checking or savings account. Home equity loans not available for properties held in a trust in the states of Hawaii, Louisiana, New York, Oklahoma and Rhode Island. Loans are subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Property insurance is required. Other restrictions may apply.