Homeowners across the country are sitting on record levels of equity. At the same time, many are holding historically low mortgage rates they don’t want to lose. That’s where a home equity loan comes in—it allows you to borrow against your home’s value without refinancing your first mortgage.
At CapCenter, we’ve always believed in giving our clients smarter, more cost-effective ways to finance their goals. That’s why we’re excited to announce a new option: 15-year home equity loans. This new term joins our existing 20- and 30-year products, giving homeowners more flexibility to choose the repayment plan that best fits their needs—all with ZERO Closing Costs.
What Is a Home Equity Loan?
A home equity loan is a fixed-rate loan secured by the equity you’ve built in your home. Unlike a cash-out refinance, it doesn’t replace your existing mortgage. Instead, it’s a separate loan with its own term, interest rate, and monthly payment.
This means if you locked in a low rate on your first mortgage, you can keep it—and still access your equity for renovations, debt consolidation, education expenses, or other large financial goals.
Why Add a 15-Year Option?
Many homeowners told us they wanted a middle ground between the lowest possible payment and a shorter, faster payoff. The 15-year home equity loan strikes that balance:
- Faster payoff than 20- or 30-year terms
- Lower monthly payment than a 10-year option (offered by some banks)
- Significant interest savings compared to longer terms
- Predictability of a fixed rate and fixed monthly payment
It’s designed for homeowners who want to access cash but don’t want to stretch payments over decades.
How a Home Equity Loan Differs from Refinancing
It’s easy to confuse a home equity loan with a refinance, but the two serve different purposes.
- Refinance: Replaces your existing mortgage with a new one. This can lower your interest rate or change your term, but in today’s environment, refinancing could mean giving up a historically low mortgage rate.
- Home Equity Loan: Leaves your original mortgage untouched and adds a second, fixed-rate loan on top of it. This lets you keep your low first-mortgage rate and still use your equity.
CapCenter’s home equity loans give you the best of both worlds: access to funds without sacrificing the loan you brag about.
Common Uses for a Home Equity Loan
Homeowners use equity in all kinds of ways. Some of the most popular include:
- Renovations or remodeling projects that add value to your home.
- Debt consolidation, replacing higher-interest credit cards or personal loans with a single lower-interest payment.
- Major purchases such as a vehicle, tuition, or a wedding.
- Emergency fund cushion—having cash available when life surprises you.
The fixed interest rate and predictable payment schedule make a home equity loan easier to budget for than variable products like HELOCs.
The CapCenter Difference: ZERO Closing Costs
Closing costs can add thousands of dollars to the cost of a loan. At many banks and lenders, home equity loans come with appraisal fees, origination fees, and other charges that reduce the value of borrowing against your home.
At CapCenter, we eliminate those costs with our ZERO Closing Cost Home Equity Loans. That means you keep more of your money and put your equity to work faster.
How Much Can You Borrow?
The amount available depends on your home’s value and your current mortgage balance. Typically, lenders allow you to borrow up to a combined loan-to-value (CLTV) ratio—often around 80–90%.
Not sure how much equity you have? CapCenter’s Home Value Estimator makes it easy to see where you stand.
Example Payment Scenarios: 15-Year vs. 20-Year vs. 30-Year
Numbers help bring loan options to life. Let’s walk through a $50,000 home equity loan at a hypothetical fixed interest rate of 7.25% (for illustration purposes only; rates vary by borrower profile and market conditions). See Todays Home Equity Rates!
Scenario 1: 15-Year Loan
- Loan Amount: $50,000
- Term: 15 years
- Interest Rate: 7.25%
- Monthly Payment: ≈ $456
- Total Interest Paid: ≈ $32,080
- Total Paid Over Life of Loan: ≈ $82,080
This option pays off faster and saves thousands compared to longer terms.
Scenario 2: 20-Year Loan
- Loan Amount: $50,000
- Term: 20 years
- Interest Rate: 7.25%
- Monthly Payment: ≈ $395
- Total Interest Paid: ≈ $44,760
- Total Paid Over Life of Loan: ≈ $94,760
Monthly payment is lower than the 15-year option, but you’ll pay over $12,000 more in interest.
Scenario 3: 30-Year Loan
- Loan Amount: $50,000
- Term: 30 years
- Interest Rate: 7.25%
- Monthly Payment: ≈ $342
- Total Interest Paid: ≈ $73,120
- Total Paid Over Life of Loan: ≈ $123,120
The lowest monthly payment, but more than double the interest of the 15-year loan.
Key Takeaway
For homeowners with the budget to handle a slightly higher monthly payment, the 15-year loan is a powerful way to save tens of thousands in interest while still enjoying manageable payments.
Why Choose CapCenter?
CapCenter has been helping homeowners since 1997 with one simple promise: we cut unnecessary costs so you can save thousands.
- ZERO Closing Costs on home equity loans, refinances, and purchases.
- Straightforward process with no hidden fees or surprises.
- Expert guidance from our local team who know the markets we serve.
Our goal is to help you make smarter financial decisions with confidence.
Ready to Put Your Equity to Work?
If you’re considering a renovation, consolidating debt, or simply want to tap into your equity while keeping your low mortgage rate, CapCenter’s 15-year home equity loan could be the perfect fit.
Start today with our Home Value Estimator or reach out to speak with our team. We’ll walk you through your options and help you make the most of your home’s value—without spending a dime on closing costs.
FAQs
Can I keep my current mortgage rate?
Yes. A home equity loan doesn’t replace your mortgage—it’s a separate loan. You keep your existing rate.
How is this different from a HELOC?
A HELOC is a revolving line of credit with a variable interest rate, while a home equity loan is a fixed-rate lump sum with a set repayment schedule.
Does CapCenter charge fees?
No. All of our home equity loans come with ZERO Closing Costs.
What terms do you offer?
We now offer 15-, 20-, and 30-year fixed-rate home equity loans.
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