Home Equity Loans

Do you make regular payments on your home mortgage? Or better yet, have you made extra payments along the way? Home equity loans allow you to borrow against the equity you’ve built in your home — and use those funds for home improvements, debt consolidation or any major expense life throws your way.

Small house on top of stacks of money

Benefits of a Home Equity Loan:

  • Combined borrowing amounts up to 90% of your home’s value.
  • Flexible terms and competitive interest rates.
  • Quick, local decisions.
  • Online access to applications.

Home Equity Loans FAQs

How does a home equity loan work?

In most cases, a home equity loan is a second mortgage. You will borrow a lump sum and make regular monthly payments on it each month for the entire life of your loan, which can range anywhere from ten years to fifteen years.
Yes, every home transaction, including a home equity loan, will incur closing costs. They typically range from 2-4% of the total loan.

With a Home Equity Loan, you borrow the sum of money upfront and make a fixed payment. With a home equity line of credit (HELOC), you borrow the money as you need it.

HELOC works similarly to a credit card, as it is a revolving line of credit. Our HELOC stays open for 5 to 10 years, depending on your preference. You are billed 1% of the outstanding balance, there is no annual fee. We also offer a no closing cost option.

A home equity loan will charge interest at a fixed rate. A HELOC will charge interest at an adjustable-rate that can change at the beginning of each month. Our HELOC rate is based on the Wall Street Journal Prime rate. We notify our clients each time the Prime rate changes.

Refinancing your mortgage will help you pay down the debt of your current mortgage. A home equity loan is a separate loan, which will require a separate monthly payment. For this reason, refinancing will typically come with a lower interest rate than a Home Equity Loan.

Yes, all home equity loans will require an appraisal for the same reason your home required one initially. Since it’s technically a second mortgage, the lender will need to verify the value of your home.

You may be able to borrow up to 90% of your home’s value with a home equity loan.

First, you should know how much you’d like to borrow and exactly what you want to use it for.

Second, in addition to other underwriting guidelines, you must meet the following requirements to qualify for a home equity loan:

  • A credit score of 660 or higher (with a higher score, you have a chance of being approved for a better rate)
  • A debt-to-income ratio of less than 43%
  • A maximum loan-to-value ratio of 90%
Yes, Field & Main Bank does not charge a prepayment penalty on home equity loans.
You should always consult a tax advisor regarding the tax-deductibility of any home mortgage.
Home Equity Loans do not count as income or earned money.

Yes, you can sell your house when you have a home equity loan. However, the sale price of your home should cover any outstanding balances connected to your home.

With Field & Main, you’ll have access to lenders before, during, and after the loan closes. We strive to respond to our clients in a timely manner, usually within 1 business day. Apply for a home equity loan online or visit one of our convenient locations in Henderson, Lexington, or Cynthiana, Kentucky and Evansville, Indiana.

Apply in as Little as 20 Minutes

Get started with your Home Equity Loan online application. If you have any questions, call us at 1-888-831-1500 for assistance.

Home Equity Lines of Credit​

Borrow cash anytime based on your equity-established borrowing limit

Home Construction Financing​

Build your dream home with no monthly principal until move-in day.