This article may contain references to products or services from one or more of our advertisers or partners. We may receive compensation when you click on links to those products or services. Nonetheless, our opinions are our own.
Key Highlights
- Leverage Your Home’s Value: Unlock the equity in your home to access funds for financial goals.
- Choose the Right Fit: Quicken Loans offers both home equity loans and HELOCs.
- Competitive Rates & Terms: Enjoy lower interest rates compared to other financing options.
- Convenient Online Process: Manage your application digitally through Quicken Loans’ user-friendly platform.
- Expert Guidance: Get professional support throughout the loan process.
Introduction
If you need significant money for home improvements, debt consolidation, education, or other financial goals, tapping into your home equity could be a smart solution. This guide breaks down Quicken Loans’ equity loan options, the application process, loan amounts, and repayment strategies to help you make informed financial decisions.
Understanding Equity Loans
What is a Home Equity Loan?
A home equity loan allows homeowners to borrow against the value of their home. As you pay off your mortgage and your home’s value increases, you build equity—the portion you own outright. This equity is collateral, helping you secure lower interest rates than unsecured loans.
However, since your home acts as security, failing to repay the loan could result in foreclosure.
How Equity Loans Work
Borrowers receive funds in two primary ways:
- Lump Sum (Home Equity Loan): Receive a one-time payment with fixed interest rates and predictable monthly payments.
- Revolving Credit (HELOC): A flexible line of credit allowing borrowers to withdraw funds as needed, similar to a credit card.
The amount you qualify for depends on factors such as your credit score, debt-to-income ratio (DTI), and loan-to-value (LTV) ratio.
Types of Equity Loans Offered by Quicken Loans
Traditional Home Equity Loans
- Provides a lump sum of cash at a fixed interest rate.
- Best for one-time expenses like home renovations or debt consolidation.
- Monthly payments remain fixed throughout the loan term.
- Uses your home as collateral, meaning failure to repay could result in foreclosure.
Home Equity Lines of Credit (HELOCs)
- Works like a credit card, allowing repeated withdrawals up to a set limit.
- Features a variable interest rate, meaning payments can fluctuate.
- Has a draw period (typically 5–10 years), followed by a repayment period.
- Often tax-deductible when used for home improvements.
Preparing for Your Equity Loan Application
Assessing Your Financial Health
Lenders evaluate applicants based on:
- Credit Score: A higher score can result in better interest rates.
- Debt-to-Income Ratio (DTI): Lenders prefer a DTI of 43% or lower.
- Home Value & Loan-to-Value (LTV) Ratio: Your available equity influences loan eligibility.
Home Value | Mortgage Balance | Available Equity | Max LTV (80%) | Potential Loan Amount |
---|---|---|---|---|
$300,000 | $150,000 | $150,000 | $240,000 | $90,000 |
A home appraisal determines your property’s market value and borrowing potential.
Beginner’s Guide to Applying for an Equity Loan
Step 1: Check Your Credit Score
- A higher credit score (above 680) improves approval chances and interest rates.
- Review credit reports for errors and dispute inaccuracies before applying.
Step 2: Calculate Your Home’s Equity
- Use online home valuation tools or check recent sales in your area.
- The final home value is confirmed through an official appraisal.
Step 3: Choose the Right Loan Type
- Home Equity Loan: Best for one-time expenses with fixed payments.
- HELOC: Ideal for ongoing or unpredictable expenses with flexible access to funds.
Step 4: Submit Your Application to Quicken Loans
- Apply online via Rocket Mortgage for a seamless process.
- Provide details about income, employment, and property information.
- Upload supporting documents for verification.
Step 5: Loan Approval & Closing
- Once approved, review your loan estimate, including interest rates and monthly payments.
- Pay closing costs, including appraisal, origination, and title fees.
- Upon signing, funds are disbursed as a lump sum or available credit.
Understanding Your Repayment Schedule
- Home Equity Loans: Fixed monthly payments over 5–30 years.
- HELOCs: Variable monthly payments based on the outstanding balance.
Late payments impact credit scores and may result in foreclosure.
Strategies for Efficient Loan Repayment
- Make extra payments to reduce principal and interest.
- Refinance to secure better interest rates.
- Set up autopay to avoid missed payments and penalties.
Conclusion
Understanding Quicken Loans’ equity loan options helps homeowners make informed financial choices. Whether selecting a traditional home equity loan or a HELOC, borrowers should assess their financial standing, understand LTV ratios, and choose a repayment strategy that aligns with their goals.
Frequently Asked Questions
What credit score is needed for a Quicken Loans equity loan?
A minimum credit score of 680 is typically required, but higher scores improve approval chances and interest rates.
Can I refinance my home equity loan with Quicken Loans?
Yes, refinancing allows you to secure a lower interest rate or change loan terms for better financial flexibility.
How long does it take to get approved?
The approval process typically takes a few weeks, depending on your credit score, home appraisal, and verification steps.
What are the current interest rates?
Interest rates vary based on market conditions, loan type, and borrower profile. Check the Quicken Loans website for updated rates.
Are there prepayment penalties?
Quicken Loans generally does not charge prepayment penalties, allowing borrowers to pay off their loan early without extra fees.

Reviewed and edited by Albert Fang.
See a typo or want to suggest an edit/revision to the content? Use the comment form below for feedback.
At FangWallet, we value editorial integrity and open collaboration in curating quality content for readers to enjoy. Much appreciated for the assist.
Did you like our article and find it insightful? We encourage sharing the article link with family and friends to benefit as well - better yet, sharing on social media. Thank you for the support! 🍉
Article Title: Quicken Loans Equity Loan Guide for Beginners
https://fangwallet.com/2025/02/04/quicken-loans-equity-loan/
The FangWallet Promise
FangWallet is an editorially independent resource - founded on breaking down challenging financial concepts for anyone to understand since 2014. While we adhere to editorial integrity, note that this post may contain references to products from our partners.
The FangWallet promise is always to have your best interest in mind and be transparent and honest about the financial picture.
Become an Insider
Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned. The opinions expressed here are the author's alone.
The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur including the potential loss of principal.