loanDepot, Inc. (NYSE: LDI), a leading provider of home lending solutions, has unveiled a new addition to its equityFREEDOM product suite aimed at empowering homeowners to manage their financial and homeownership goals more effectively. With Americans holding a record $32.7 trillion in home equity, loanDepot’s equityFREEDOM Home Equity Loan joins its existing Home Equity Line of Credit (HELOC) to offer robust financial tools. These options enable homeowners to reduce borrowing costs without impacting their current mortgage rates.
“Owning a home provides distinct financial advantages, including access to tools that promote financial well-being,” noted Jeff Walsh, President of loanDepot. “In a period marked by inflation, where non-housing consumer debt has surged to nearly $5 trillion, many families turn to high-interest credit cards and loans. Strategically utilizing home equity borrowing can provide crucial relief, underscoring our decision to expand our home equity portfolio.”
Comparatively, with the national average credit card interest rate exceeding 24%, homeowners facing $50,000 in credit card debt can save over $21,000 in interest over three years by opting for a home equity loan. Additionally, home equity loan interest is often tax deductible, offering further financial benefits.
The equityFREEDOM Home Equity Loan streamlines access to home equity through a straightforward application process, providing funds in a lump sum via a 20-year, fully amortizing loan without prepayment penalties. This versatile financing option supports major expenses like home improvements, debt consolidation, medical bills, or education costs, allowing borrowers to tap up to $350,000 based on creditworthiness and home equity.
For those seeking more flexibility, the equityFREEDOM HELOC offers swift processing from quote to closing in as little as three weeks. It features a three-year draw period followed by a 10-year interest-only payment phase and a subsequent 20-year amortizing repayment term in most states. Homeowners can access up to $250,000, with borrowing limits based on a maximum of 90% combined loan-to-value ratio.
Alec Hanson, Chief Education Officer at loanDepot, emphasized the importance of tailored financial solutions: “Every borrower’s financial needs are unique. Some may prefer the stability of fixed monthly payments with a home equity loan, while others value the flexibility of a HELOC to draw and repay funds over time. Working with knowledgeable mortgage professionals who offer diverse product options ensures borrowers can make informed decisions aligning with their short and long-term financial objectives.”
loanDepot plans to expand its equityFREEDOM suite further with the introduction of a first lien home equity line of credit later this summer, reinforcing its commitment to empowering homeowners with comprehensive home equity lending solutions.
