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What Is Home Equity?

Home equity is the difference between how much you owe on your mortgage and how much your home is worth. Navy Federal has home equity loan options that allow you to use your home’s equity to help you pay for life’s big expenses.

Included with All Navy Federal Home Equity Loans and Lines of Credit

  • Personal guidance from first call to closing
  • No application or origination fee1
  • Navy Federal servicing for the life of your loan

Learn More about home equity loans and lines of credit

Home Equity Loan Types and Rates

Fixed-Rate Equity Loan

The best part about our Fixed-Rate Equity Loan2 is stability. This is a great option if you’re in need of a specific amount of money for a one-time expense. You'll get a lump sum amount and enjoy a fixed rate for the life of the loan with set monthly payments.

Loan Details:

  • Borrow up to 100% of your home's equity3
  • Min/Max Loan Amount: $10,000 - $500,000
  • Fixed rate for the life of the loan
  • No application or origination fee

Rate:

APR as low as: 5.740%

Term:

5-, 10-, 15-, 20-year2

Home Equity Line of Credit

Our Home Equity Line of Credit1 offers flexibility. If you expect to have ongoing expenses, this option is for you. Borrow as you need, when you need it, up to your maximum credit limit.

Loan Details:

  • Borrow up to 95% of your home’s equity4
  • Min/Max Loan Amount: $10,000 - $500,000
  • Variable rate, based on the U.S. Prime Rate
  • No application, origination, annual or inactivity fee1
  • Interest-only option available5

Rate:

APR as low as: 5.750%

Term:

20-year draw period, followed by 20-year repayment period

New! Enjoy a Smooth Loan Experience With HomeSquad

Step-by-Step Guidance and 24-7 Access to Your Loan Status

Learn More about HomeSquad

Home Equity Resources

View MoreHome Equity Resources

Disclosures

1

Home Equity Lines of Credit are variable-rate lines. Rates are as low as 5.750% APR and are based on an evaluation of credit history, CLTV (combined loan-to-value) ratio, line amount and occupancy, so your rate may differ. The plan has a maximum APR of 18%. For loan amounts of up to $250,000, closing costs that members must pay typically range between $300 and $2,000. The closing costs depend on the location of the property, property type, and the amount of the Equity Line. Members may borrow against their available credit line for a period of 20 years, after which any existing balance must be paid in full within the following 20 years. Rates are subject to change—information provided does not constitute a loan commitment.

Home Equity Lines of Credit are available for primary residences, second homes and investment properties. Primary residences are owner-occupied, principal residences only. Second home properties must be owner-occupied at some point during the year. Investment properties are non-owner occupied.

All lines for amounts less than $25,000 require a 1.00% increase in APR.

Second home lines require a 1.00% increase in APR and may be subject to other restrictions.

Investment lines require a 2.00% increase in APR with a maximum line amount of $100,000 and a maximum CLTV of 70%.

You must carry homeowners insurance on the property that secures this plan.

Home Equity Lines of Credit are not available in Texas.

Lifetime Floor: The minimum APR that can apply during the Home Equity Line of Credit Plan is 3.99%. Our Home Equity Line APR varies based on the U.S Prime Rate and is updated to the published rate in the Wall Street Journal on the first workday of every month.

2

Rates are as low as 5.740% APR and are based on an evaluation of credit history, CLTV (combined loan-to-value) ratio, loan amount and occupancy, so your rate may differ. For loan amounts of up to $250,000, closing costs that members must pay typically range between $300 and $2,000. The closing costs depend on the location of the property, property type, and the amount of the Equity loan. Rates are subject to change—information provided does not constitute a loan commitment.

A sample Fixed-Rate Equity Loan monthly payment based on $100,000 at 6.75% APR for 20 years is $760.36. Taxes and insurance not included; therefore, the actual payment obligation will be greater.

Fixed-Rate Equity Loans are available for primary residences and second homes. Primary residences are owner-occupied, principal residences only. Second home properties must be owner-occupied at some point during the year.

All loans for amounts less than $25,000 require a 1.00% increase in APR.

Second home loans require a 1.00% increase in APR and may be subject to other restrictions.

You must carry homeowners insurance on the property that secures this plan.

3

Some restrictions may apply. The maximum CLTV for primary and second home properties is 100%. Factors that may impact the amount of equity that can be borrowed include evaluation of credit history, CLTV ratio, occupancy, loan amount, and loan term (5, 10, 15, 20 years).

4

Some restrictions may apply. The maximum CLTV for primary and second properties is 95% and for investment properties is 70%. Factors that may impact the amount of equity that can be borrowed include evaluation of credit history, CLTV ratio, occupancy, and loan amount.

5

Home Equity Interest-Only Lines of Credit are variable-rate lines. Rates are as low as 6.750% APR and are based on an evaluation of credit history, CLTV (combined loan-to-value) ratio, line amount and occupancy, so your rate may differ. The plan has a maximum APR of 18%. Line amounts are up to $250,000 and the closing costs that members must pay typically range between $300 and $2,000. The closing costs depend on the location of the property, property type, and the amount of the Equity Line. Members may borrow against their available credit line for a period of 20 years, after which any existing balance must be paid in full within the following 20 years.  Payments are interest only for 20 years and then change to principal and interest for the remaining 20 years.  Rates are subject to change—information provided does not constitute a loan commitment.

Home Equity Interest-Only Lines of Credit are available for primary residences and second homes. Primary residences are owner-occupied, principal residences only. Second home properties must be owner-occupied at some point during the year.

All lines for amounts less than $25,000 require a 1.00% increase in APR.

Second home lines require a 1.00% increase in APR and may be subject to other restrictions.

You must carry homeowners insurance on the property that secures this plan. 

Home Equity Lines of Credit are not available in Texas.

Lifetime Floor: The minimum APR that can apply during the Home Equity Line of Credit Plan is 3.99%. Our Home Equity Line APR varies based on the U.S prime rate and is updated to the published rate in the Wall Street Journal on the first workday of every month.