If you’re a homeowner in Nashville, you’re experiencing one of the city’s most significant real estate booms. Home prices recently shot to an average of $428,000, driving rental prices to increase another 15-20% as well.
Whether you’re a veteran Nashville homeowner or a first-time homebuyer, one thing’s certain: with closing costs, mortgage payments, upkeep, renovation expenses to manage, and maybe some debt, it’s time to consider a home equity loan.
Here at The Home Loan Expert, mortgage loans are our specialty. We make it our business to know the market inside out to help you secure competitive, straightforward mortgage loans wherever you are–from Missouri to Nashville, Tennessee.
Today we’ll walk you through everything you need to know about home equity loans – what you’re borrowing against, how the monthly payments work, and a list of Nashville mortgage lenders that offer the best home equity loan options.
What is a home equity loan?
A home equity loan has a few other names you may be more familiar with: second mortgage, home equity installment loan, and simply equity loan, to name a few. Home equity loans leverage one of your greatest assets to help you borrow money: the equity in your home.
The loan works like a mortgage, where you borrow a certain amount of money and pay it back over a certain period. The difference is that you’re borrowing the money from yourself, so you’re not paying any bank fees. These are secured loans, which means that the mortgage lender puts a lien on your property, making it vulnerable to foreclosure if you don’t pay off the loan.
Home equity loans consider your mortgage balance and how much your home is worth. For example, if the Nashville real estate performance sees massive improvements, your home could realize an appreciation in value. An appreciation in value gives you more equity to borrow against.
Why would someone need a home equity loan?
A home equity loan is an accessible way to obtain large sums of money in one go. You might need a home equity loan to do any of the following:
- Consolidate your debts (debt consolidation)
- Make renovations, home improvements, or other high-cost changes to your home
- Paying for college or weddings, funding a business, and other cash-heavy endeavors
Nashville Home Equity Loan Vs…
Home equity loan vs. mortgage loan
A mortgage loan is an unsecured debt based on your credit history, income, debts, assets, and other financial information. With home equity loans, banks and other institutions secure your loan against your current home, with the house acting as collateral if the borrower defaults on the loan.
Home equity loan vs. home equity line of credit (HELOC)
While similar, since they both provide a second mortgage based on home equity, home equity loans and HELOCs (Home Equity Line of Credit) aren’t the exact same. Home equity loans usually have fixed rates, while HELOCs have variable rates. Plus, home equity loans give you access to all the money at once, while HELOC lets you borrow small or significant amounts over time, working somewhat like a credit card based on your home’s equity rather than credit history.
Home equity loan vs. refinancing
Home equity loans usually act as a second mortgage, offering you a loan amount consistent with extra equity in your home. Refinancing replaces your current mortgage with a new loan, often with a better rate. The Home Loan Expert combines these two products into a debt consolidation refinancing (or cash-out refinance loan).
Best Nashville Mortgage Lenders for Home Equity Loans
The Home Loan Expert
If you’re looking to get a home equity loan in Nashville, The Home Loan Expert has options for you to take advantage of the current equity of your home. Boasting a seamless online experience and a plethora of options for mortgages and home loans in Tennessee, The Home Loan Expert is an ever-reliable portal for your home-owning journey.
Many of our clients use their home equity to take out Debt Consolidation Loans (also referred to as Cash-Out Refinance Loans) as a way to reduce consumer debts at a lower interest rate. Note that a home equity loan is a second loan, while with a cash-out refinance, you use the equity you’ve built into your home, borrow more than you owe on the mortgage, and get cash for the difference.
The Home Loan Expert built their business determined to keep the home loan process as easy and stress-free as possible. Getting your application approved is a breeze when you get started with their 5-Minute Loan Approval* application. Ensuring that the process is as personal as it is professional, they put the customer and the community first.
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:
- Personalized and hands-on service.
- It’s like working with a friend who’s also a home loan expert.
- Best in class closing costs
- Variety of loan and mortgage options
- Robust down payment assistance options
Cons:
- Any concerns? Just ask us!
Start the approval process at Home Loan Expert today!
Hero Loan
Hero Loan–one of the fastest-growing lending platforms in the country–serves active duty military, veterans, and their families. Its mission is to provide fast, personalized service while supporting veteran-owned businesses and events. They offer a cash-out refinance to help you optimize 100% of your home equity. A nice bonus? They cover the appraisal costs.
As a direct-endorsed VA Home Loan Lender in Tennessee, Hero Loan can close VA loans in as little as 14 days–compared to most lenders that take up to 60 days. They underwrite all VA loans in-house, meaning lower mortgage rates and no upfront or out-of-pocket costs.
Loans & Services
- VA Loans
- VA Streamline Refinance or IRRRL
- Conventional loan refinancing
- “Keep it 100” Cash-Out Refinance
- FHA Loans
Pros:
- Quicker turnaround time than competitors
- Complete all VA paperwork for clients
- Underwrite all VA loans in-house
- No appraisal or out-of-pocket fees
Cons:
- Services are for active-duty military, veterans, and their families only
The Tennessee Credit Union
Serving Tennessee residents since 1950, the Tennessee Credit Union offers an 80% loan-to-value ratio for home equity loans. Benefits include various perks like store discounts, discounted insurance, and tax services. Members feel part of a family, treated more like human beings than more prominent corporate companies.
Loans & Services
- Home equity loan (second mortgage)
- Conventional mortgage loan
- Refinancing
- HELOC
- Home improvement loan (fund improvements with no equity)
Pros:
- Excellent, personalized customer service
- Transparency with fees and rates
Cons:
- Inconvenient service with a lack of online functions
- You must be a member to access services
Ascend Federal Credit Union
Ascend Federal Credit Union offers the same perks as a local credit union on a national scale. The institution provides excellent benefits to members, including access to scholarships, financial education, flexible terms, and more. Ascend’s home equity loan impressively allows you to borrow up to 95% of your home value, higher than the average 80% offered by other lenders.
Loans & Services
- Fixed-rate and adjustable rate mortgages
- Home equity loans
- HELOCs
- Personal loans
Pros:
- Low closing costs
- Flexible terms
- Transparent rates
- No prepayment costs
- Potential loan interest refund
Cons:
- Reviews cite poor customer service
New American Funding
New American Funding offers a diverse range of loan products, priding itself on helping clients achieve the American dream. They also offer Home Equity Line of Credit and Cash-Out Refinance Loans that help borrowers borrow 80-90% of the equity they have in their homes.
Loans & Services
- Home Equity Line of Credit
- Conventional Loans
- FHA loans
- Jumbo loans
- Reverse Mortgages
- USDA loans
- VA Loans
- Refinancing
- Cash-out refinance
Pros:
- Professional, responsive staff
- Quick closing – 14-day close guarantee
Cons:
- Reviewers cite inconsistencies in customer service and loan amounts
Discover
Discover, a member of the FDIC and an Equal Housing Lender, offers home equity loans in Nashville and throughout the rest of the country. With Zero application and appraisal fees and zero cash required at closing, they work to make a home equity loan an accessible option.
Loans & Services
- Home purchase loans
- FHA Loans
- VA Loans
- Fixed- and adjustable-rate mortgages
- Refinancing
Pros:
- Fixed rates APRs
- Rates of 4.15%-8.99% for first liens and 5.24%-11.99% for second
- Online and over-the-phone applications
Cons:
- Higher minimum loan amount
- No HELOC option, if that’s what you’re looking for
Blue Sky Financial
Blue Sky Financial is an independent mortgage broker working with third-party lenders to help you secure a mortgage. While they don’t include specific loan information on their website, many customer ratings indicate that various loan products are on offer, including home equity loans, at reasonable rates.
Loans & Services
- Home purchase loans
- FHA Loans
- VA Loans
- Fixed- and adjustable-rate mortgages
- Refinancing
Pros:
- No upfront fees
- Quick application and approval
- Under-one-month closing
- High average customer ratings
Cons:
- Only licensed in 8 US states
- Unclear fees for third-party lenders
Lend U.S.
Headquartered in California, Lend US is the combination of two popular US lenders: RPM Mortgage and American Eagle Mortgage. They offer a wide range of loan products depending on your situation, credit performance, investments, debts, etc.
What’s excellent about Lend US is the company’s quick application process, which you can complete entirely online. However, Lend US isn’t very transparent with rates and fees on the website.
Loans & Services
- Home Equity Line of Credit
- Refinance loans
- Loan forbearance
- Conventional loans
- FHA Loans
- USDA Loans
- Family Gift Fund Programs
- Relocation support
Pros:
- Exceptional customer service
- Advanced approval
- Consultation and advisory services
- Ongoing reviews
- Quick, easy application
- Community initiatives
Cons:
- Rates and fees aren’t listed
Truist
Truist is a digital mortgage provider that provides clients with banking and other loan services. They offer refinancing, various-term fixed mortgages, VA Loans, and more. The Truist website lists various mortgage rates with regular updates. Truist mortgage holders can also access resources and information about monthly payments, assistance, and standard industry topics surrounding mortgages. The company also offers customer support through a digital app, email, or phone.
The loan provider formerly operated under Suntrust, but recently merged to Truist. Unfortunately, customers cite many inconsistencies and poor service since the merger.
Loans & Services
- Home Equity Line of Credit
- 30-Year VA Loan
- 30-Year FHA Loan
- 30-Year Jumbo Loan
- 30- and 15-Year Fixed Loan
Pros:
- Interest rate transparency
Cons:
- Slow response times
- Poor customer service
Tennessee State Bank
Tennessee State Bank is a reputable financial institution that offers banking services, including checking and savings accounts. The bank also provides home equity loans to eligible borrowers borrowing against their homes for Home Equity Lines of Credit. Fees are higher here than with other lenders.
Loans & Services
- Home Equity Line of Credit
- Home Equity Line of Credit with a minimum 700 credit score
Pros:
- 16 local Tennessee locations
- Good standing with the Consumer Financial Protection Bureau
Cons:
- High fees
- Poor online and app platforms
What is the process of getting a home equity loan in Nashville?
Securing a home equity loan is similar to other loans in the process. Here are some quick steps to borrow a home equity loan in Nashville.
1. Assess Your Finances: What’s your credit score? Income? Do some research on your own to see whether your financial scenario can take on more monthly payments and if you’d be eligible. Additionally, think about exactly why you want the home equity loan. How are you going to spend the money? If you need help with this step, make sure to reach out to The Home Loan Expert team so they can help guide you through this process.
2. Find Your Home Value: Conduct some research on the real estate market performance. Are houses similar to yours selling for $100,000 more than what you paid for it? You might even consider getting a formal appraisal to find out.
3. Imagine Your Ideal Loan Amount: How much do you want your loan amount to be? Compare that with the difference between your mortgage balance and your appraisal amount. If the values are within a similar range, you might be eligible for a home equity loan. But there’s only one way to find out:
4. Prepare For Home Equity Loan Meetings: Gather documentation you’ll likely need to bring to secure a home equity loan, or at least understand your options.
- Social security number
- Employment history, letter, and contact information
- Pay stubs
- Income statements and tax documentation (W-2 statements)
- Homeownership and home insurance proof
- Debt obligation documentation (alimony, for example)
- Home appraisal
- Existing debt information
- Documentation of any existing liens on your home
5. Talk to Your Bank or Lender: The best place to start with a home equity loan is by booking a consultation with your current lender or bank. Since they offered you the original mortgage, they already have the most information and history at their fingertips, which may encourage quicker approval. They may also conduct an appraisal to assess your home’s value.
6. Shop Around: Talk to other lenders and financial institutions to see what home equity loans they offer. They might have better interest rates, loan terms, and more.
Conclusion: Best Nashville Mortgage Lenders for Home Equity Loans?
Nashville’s rapidly growing real estate market makes now an incredible time to consider refinancing. A home equity loan will give you the capital to reduce stress in your financial life through renovations, debt consolidation, or anything else.
The Home Loan Expert is your one-stop shop for everything you need to know about loans. Our skilled consultants are very happy to take the frustrating, confusing aspects out of the mortgage process to help you soar. Ready to change your life with home equity loans or refinancing? Contact us today!
The Home Loan Expert
