loanDepot Expands Home Equity Options with New Loan Product

LoanDepot, Inc. has added a home equity loan to its equityFREEDOM suite. With Americans holding a record $32.7 trillion in home equity, this new product allows homeowners to leverage their equity without sacrificing their low mortgage rates. The equityFREEDOM Home Equity Loan complements the existing Home Equity Line of Credit (HELOC), offering powerful tools for financial management.

With inflation on the rise and consumer debt nearing $5 trillion, our new home equity loan can provide much-needed financial relief,” added Walsh.

High credit card interest rates make managing debt challenging. For example, homeowners with $50,000 in credit card debt could save over $21,000 in interest over three years by choosing a home equity loan instead.

The equityFREEDOM Home Equity Loan offers a 20-year, fully amortizing loan with no prepayment penalties, allowing homeowners to access up to $350,000, depending on their credit profile and home’s combined loan-to-value ratio (CLTV).

The equityFREEDOM HELOC provides a flexible option with a three-year draw period and a 10-year interest-only payment period, followed by a 20-year repayment term. Borrowers can access up to $250,000 with a maximum of 90% CLTV.

“Working with a reputable mortgage professional is crucial to finding the right solution for short and long-term financial goals,” added Hanson.

loanDepot plans to expand its equityFREEDOM suite further with a first lien home equity line of credit later this summer.