Are you a homeowner in St. Louis? If so, congratulations! A lack of housing inventory in Missouri’s capital continues to push average home prices higher and higher. The result? Lots of rental properties–a plus for homeowners who want to rent out their basement or investors who want to take advantage of a hot market.
But some of us just want a simple family home in the Show-me state. Maybe you’re looking to upsize or improve your current home, but money is tight. Whether to reduce your mortgage payments or to get a down payment together for a second property, a home equity loan may be the best option for you.
Here at The Home Loan Expert, our business is mortgage loans without the jargon and red tape. Our mission is to help people like you navigate the real estate market with confidence and security. An excellent way to do that is to learn about all of your home loan options in St. Louis–like home equity loans.
What is a home equity loan?
A home equity loan is a type of loan that allows you to borrow against the equity in your home. Have you ever heard about someone getting a second mortgage? They often borrow against their homes to do this.
You might have also heard of home equity installment loans, a similar term for the home equity loan. Home equity loans are secured by the home itself as the collateral for your debt.
The best part about home equity loans is that you’re borrowing the money from yourself, so the interest will be much lower, and your home acts as enough collateral to combat a lower income or less-than-stellar credit score.
Most home equity loans function like mortgages, where the borrower pays back a set amount every month for a time similar in length to a traditional mortgage.
What is the process of getting a home equity loan?
Have you ever taken out a mortgage? The process to secure a home equity loan is similar. Follow these steps to score a home equity loan in St. Louis.
- Review Your Finances: Consider your financial scenario. Take an inventory of your assets and review your monthly income and spending. You should also know your credit score and debt-to-income ratio. A thorough review will help you determine whether you can afford a home equity loan and if it’s a good fit for you.
- Appraise Your Home and Loan Potential: Find out how much your home is worth to assess how much you can borrow. You might research St. Louis mortgage rates and the real estate market to examine selling and buying prices for homes like yours. Of course, the best way to find out the actual value is through an appraisal, which can sometimes be required for a home equity loan.
- Talk to Your Lender: The best lender to start with is the one with whom you have your current mortgage since they already have much of your information. Regardless, you’ll want to have these documents handy:
- Social security number
- Employment letter and information
- Income statements and W-2 statements
- Proof of homeownership and insurance
- Appraisal
- Debt documentation (child support, for example)
- Lien documentation, if any
- Compare and Contrast: Of course, your bank might not be the best lender. Find competitive interest rates by shopping around with another broker or bank. You may also try to leverage your findings to get better terms from your original bank. At The Home Loan Expert, we’re creating the most efficient mortgage experience–and the most competitive rates.
Why would someone need a home equity loan?
A home equity loan is one of the most accessible routes to large sums of cash. Here are some popular reasons why someone would borrow a home equity loan:
- Debt consolidation
- Making home improvements
- Securing a down payment for a second property
- College tuition or weddings
- Backing new business ventures and investments
So, where can you find home equity loans in St. Louis mortgage lenders and institutions?
Best St. Louis Mortgage Lenders for Home Equity Loans
The Home Loan Expert
The Home Loan Expert is a direct mortgage lender with a knack for impeccable customer experience. If you’re looking for reliability as you shop for a home equity loan, you’ll love The Home Loan Expert’s dedicated consultants and personal touches. They don’t outsource your application to third parties; instead, they walk you through the whole process from start to finish.
We offer home equity loans and similar, from debt consolidation refinance for your current mortgage to home equity loans that many clients use for debt consolidation loans.
What sets us apart from our competitors? We believe it’s our mission to end the confusing, inaccessible nature of mortgages. Everyone deserves the chance to be a homeowner, and our dedicated staff works to empower our clients and make that a reality.
As for the process? Simply fill out a 5-Minute Loan Approval* application.
Loans & Services:
- Adjustable-Rate Mortgages
- Bank Statement Mortgages
- Cash-Out Refinance
- Conventional Loans
- Debt Consolidation
- FHA Loans
- First Responder Loan Program
- Fixed-Rate Loans
- Home Purchase Loan
- Jumbo Home Loans
- No Income Verification Loans
- Union Loans
- USDA Loans
- VA Loans
- Zero Dollar
Pros:
- Unparalleled customer experience
- Reliability in having the entire process under one roof
- Personable attitude and nature
- Lowest closing costs
- Flexible loan and mortgage options
- Down payment assistance
Cons:
- There are a lot of options. You’ll probably need to research our loan options or reach out to a team member who will be happy to help determine which option is best for you.
Minimum down payment: Ranging from 3% to 0% (for VA members)
Start the approval process at The Home Loan Expert today!
Hero Loan
Are you a military service member, veteran, or related to either? Hero Loan is the mortgage lending platform for your home equity loan needs. They offer quick and personalized service, and they dedicate their business to supporting Americans that have served.
Like The Home Loan Expert, Hero Loan underwrites all loans in-house. You’ll enjoy convenience and affordability with reasonable closing costs and quick closing times. Specifically, Hero Loan boasts a 14-day close versus the standard 60.
Loans & Services
- VA Loans
- VA Streamline Refinance or IRRRL
- Conventional loan refinancing
- VA Cash-Out Refinance
- FHA Loans
Pros:
- Faster turnaround than competitors
- Assistance in completing VA paperwork
- In-house underwriting for all VA loans
- Appraisal fee covered
Cons:
- Services are for active-duty military, veterans, and their families only
Minimum down payment:
$0 down payment
Discover
Discover is a household name for online and in-person banking, credit cards, loans, and more. The bank’s home equity loans feature impressively little (if any) fees. Specifically, you won’t pay any origination, application, closing, or appraisal fees with Discover.
Customers have good things to say about Discover’s customer service team, which is always available (7 days a week) to assist you with your application. You can borrow between $35,000 to $300,000 with Discover, with interest rates ranging from 5.99% to $300,000.
Loans & Services
- Home equity loans
- Mortgage refinancing
- Credit cards
- Online banking
Pros:
- No fees
- Regular customer assistance is available
Cons:
- High credit score required for preferred rates
Minimum down payment:
Not listed
Veterans United Home Loans
Veterans United Home Loans was rated the #1 mortgage lender for veteran buyers. While the lender doesn’t offer traditional home equity loans, they provide an impressive cash-out refinancing loan for qualified veterans. Eligible applicants can refinance their existing mortgages into new and improved loans with better rates. And the money leftover from the appreciated property is ready-to-use cash.
Loans & Services
- VA Loans
- VA mortgage
- Cash-out Refinancing
- Streamline Refinancing
- Jumbo Loans
Pros:
- Native to Missouri
- 24/7 customer service
- Quick pre-approval
- Free credit counseling
Cons:
- It doesn’t offer home equity loans without refinancing your existing mortgage
Minimum down payment:
Not listed
Bank of America
The Bank of America is a household name and seems to offer HELOCs and home equity loans, with educational resources outlining the difference between the two. However, the website is vague in terms of the exact process for taking out a home equity loan specifically. Nonetheless, the bank has solid reviews that applaud its low fees and competitive rates.
Loans & Services
- Mortgages
- Refinancing
- HELOC
- Cash-out refinancing
Pros:
- Reliable, well-known lender
Cons:
- Vague information about taking out home equity loans on the website
Minimum down payment:
Not listed
BMO Harris Bank
BMO Harris Bank is the 8th largest bank in North America, providing commercial and personal banking, investment services, and wealth management to over 12 million customers.
Loans & Services
- Home Equity Line of Credit, both variable and fixed-rate
- Home Equity Loans
- Mortgages
- Personal Line of Credit
- Personal Loans
Pros:
- Named One of the World’s Most Ethical Companies by the Ethisphere Institute
- No application fees
Cons:
- To qualify, borrowers need a high credit score of at least 700.
- Home equity loans are not available for investment properties or second homes.
Minimum down payment: Not listed.
Golden Oak Lending
Golden Oak Lending is a renowned mortgage lender in the St. Louis area with fantastic reviews, specifically about its customer service standards and refinancing program. The lender offers various loan services, including home equity loans with competitive rates.
Loans & Services
- Conventional loans
- FHA Loans
- USDA Refinancing
- VA Loans
- Jumbo Loans
- Home Equity Loans
- New-Home Loans
Pros:
- Impeccable customer service
- Competitive rates
Cons:
- Vague information about loan terms and fees
Minimum down payment: Not listed.
Flagstar Bank
Flagstar Bank offers the full range of banking services, and a variety of mortgage loans but doesn’t currently offer Home Equity Loans. However, it does offer Home Equity Lines of Credit, which allow you to borrow over time, instead of a large sum at once (like a home equity loan).
Loans & Services
- Federal Housing Administration (FHA) loans
- Department of Veterans Affairs (VA) loans
- U.S. Department of Agriculture (USDA) loans
- Jumbo loans
- Refinance loans
- Fixed-rate loans
- Adjustable-rate loans
- Construction loans
- Renovation loans
- Home equity lines of credit
Pros:
- HELOC applications can be made online or via phone
- Convenient online portal for managing payments or viewing the account
Cons:
- Doesn’t currently offer Home Equity Loans
Minimum down payment: Not listed.
Bethpage Federal Credit Union
Bethpage Federal Credit Union has been serving its members and their communities for over 80 years. As a traditional credit union, they offer all the banking services you’d expect, but unfortunately they do not offer Home Equity Loans. However, they do offer Home Equity Lines of Credit, which allow you to borrow over time (instead of a large sum at once with a home equity loan).
Loans & Services
- Mortgage loans
- Refinance loans
- HELOC
Pros:
- Competitive rates for HELOCs
- Low costs – no application, origination or appraisal fees.
Cons:
- No Home Equity Loans are offered at this time
- Must become a member to apply
Minimum down payment: Not listed.
First Community
First Community Credit Union offers a modest home equity loan with a maximum of $50,000. However, the loan-to-value is 90%, higher than many others (often 80%). Borrowers can use the funds to finance various ventures, including home improvements.
But if you’re looking to renovate, this lender even offers a 100% loan-to-value home improvement loan dedicated to home improvements. First Community only provides a fixed rate for their home equity loan, which may be a plus given the market’s fluctuating interest rates.
Loans & Services
- HELOC
- Home Equity Loan
- Home improvement loans
- Personal term loans
- Commercial real estate loans
- Land loans
Pros:
- Flexible terms
- Competitive rates
- Low fees
- Personalized service
Cons:
- Limited branches
- Customer reviews cite predatory advertising
- Higher minimum down payment
Minimum down payment:
10%
Neighbors Credit Union
Neighbors Credit Union offers an impressive 95% loan-to-value on its home equity loan. This lender also shines with its minimal fees and absent closing costs – a plus for buyers on a budget. Furthermore, Neighbors Credit Union offers competitive rates and flexible terms for members and values giving back to the community.
It was also ranked the #1 credit union in Missouri!
Loans & Services
- Home equity closed-end loan
- HELOC
- 8- and 12-year refinancing
- No closing costs
Pros:
- Quick pre-approval
- No balance transfer fees
- No appraisal fees
- Fast service
Cons:
- Must meet membership requirements to access loans
Minimum down payment:
5%
New American Funding
New American Funding is a mortgage lender dedicated to helping you achieve the American Dream. A dynamic lender, they offer various conventional and refinancing loans, as well as cash-buyer services.
Loans & Services
- Cash-out refinancing
- VA Loans
- Jumbo Loans
- Reverse Mortgages
- USDA Loans
Pros:
- Guaranteed 14-day closing
Cons:
- It doesn’t offer home equity loans without refinancing your existing mortgage
- Poor customer reviews about customer service
Minimum down payment:
Not listed.
St. Louis Home Equity Loans FAQ
Home equity loan vs. mortgage loan
A borrower takes out a home equity loan through an existing home and mortgage under their name. A traditional mortgage loan doesn’t pull from the equity of an existing home.
Home equity loan vs. home equity line of credit (HELOC)
These two loan options are pretty similar in that they both tap into your home equity. But the main difference is this:
Home equity loans offer a lump sum payment for the entire loan amount. You must pay back the loan separately, with free range of using the amount in your account. A HELOC is like a revolving loan, where you can borrow as you please and then pay back your balance. We have a handy HELOC payoff calculator you can use to determine payments and stay on track.
Home equity loan vs. refinancing
Home equity loans are loans that you borrow in addition to your current mortgage. On the other hand, refinancing is a way to replace an existing mortgage with a new loan at a better rate. The Home Loan Expert combines these two into one beautiful cash-out refinance loan.
Conclusion: Best St. Louis Mortgage Lenders for Home Equity Loans?
Refinancing and home equity loans might be stressful, but a bit of education and patience goes a long way. While the St. Louis real estate market feels indefinitely in flux, you can find relief with solid home equity loans to make your next dream venture a reality.
The Home Loan Expert has dedicated experts and consultants waiting to hear from you. We’ll walk you every step of the way to help you make the most of a home equity loan and build your wealth.
Ready to find the best home equity loan and refinancing in St. Louis? Contact us today!
Are you a homeowner in St. Louis? If so, congratulations! A lack of housing inventory in Missouri’s capital continues to push average home prices higher and higher. The result? Lots of rental properties–a plus for homeowners who want to rent out their basement or investors who want to take advantage of a hot market.
But some of us just want a simple family home in the Show-me state. Maybe you’re looking to upsize or improve your current home, but money is tight. Whether to reduce your mortgage payments or to get a down payment together for a second property, a home equity loan may be the best option for you.
Here at The Home Loan Expert, our business is mortgage loans without the jargon and red tape. Our mission is to help people like you navigate the real estate market with confidence and security. An excellent way to do that is to learn about all of your home loan options in St. Louis–like home equity loans.
The Home Loan Expert
