Question 1

How much can I borrow with a home equity loan in Atherton?

Accepted Answer

Loan amounts depend on your home's appraised value and existing mortgage balance. Most lenders allow borrowing up to 80-85% combined loan-to-value, minus your first mortgage. You must retain at least 15-20% equity.

Question 2

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

Accepted Answer

A home equity loan provides a fixed lump sum with set monthly payments. HELOCs work like credit cards, allowing draws during a set period with variable rates. HELoans suit one-time expenses; HELOCs fit ongoing costs.

Question 3

Are home equity loan interest payments tax-deductible?

Accepted Answer

Interest may be deductible if you use funds to buy, build, or substantially improve your home. Other uses don't qualify for deductions. Consult a tax professional about your specific situation and documentation requirements.

Question 4

How long does it take to get a home equity loan approved?

Accepted Answer

Expect 2-6 weeks from application to funding. Timeline depends on appraisal scheduling, documentation completeness, and lender processing speed. Having financial documents organized accelerates the process significantly.

Question 5

Can I pay off a home equity loan early without penalty?

Accepted Answer

Many lenders allow early payoff, but some charge prepayment penalties within the first 2-3 years. Review your loan agreement carefully before signing. California law limits these penalties and requires clear disclosure upfront.

Home Equity Loans in Atherton: Access Your Property's Value With Fixed-Rate Certainty