Question 1

What's the difference between a home equity loan and a HELOC?

Accepted Answer

A home equity loan gives you a lump sum upfront at a fixed rate and fixed payment. A HELOC is a line of credit you draw from as needed, with a variable rate.

Question 2

Can I get a home equity loan if my credit score is below 680?

Accepted Answer

Some lenders will work with scores in the 620–679 range, but rates will be higher and terms tighter. Most mainstream lenders start at 680. Call to discuss your specific situation — credit is just one factor.

Question 3

How long does it take to close a home equity loan?

Accepted Answer

Typical timeline is 30 to 45 days from application to funding. Strong borrowers with clean equity positions may close in 20 days. The appraisal is usually the longest step — plan for 7 to 10 days there.

Question 4

Will a home equity loan hurt my credit score?

Accepted Answer

The application triggers a hard inquiry, which dips your score by a few points. Opening a new account also lowers your average age of credit. Both effects fade within months.

Question 5

Can I use a home equity loan to pay off credit card debt?

Accepted Answer

Yes. Consolidating high-interest credit card debt into a fixed-rate home equity loan often saves money. Just don't run up the credit cards again — you'll end up with two debts instead of one.

Home Equity Loans in Piedmont: Tap Your Home's Value