From Yahoo Finance: 2025-04-16 17:31:00

A home equity loan allows you to borrow cash against your home equity, but you need substantial equity to qualify. Most lenders require an appraisal to determine your home’s value and ensure the risk is manageable. No-appraisal options exist, but they come with limitations on loan amounts. Home equity loans offer fixed rates and lump sum payments over 5-30 years, based on your home’s equity. You need to know your home’s market value to calculate your total equity after subtracting your mortgage balance. Most lenders cap borrowing at 80% of your home’s value to maintain a 20% equity stake. Skipping the appraisal may save time and money, but it involves risks for both lenders and homeowners. Consider other financing options like cash-out refinancing or personal loans if an appraisal is a concern. Consult a financial professional to explore the best loan option for your circumstances.



Read more at Yahoo Finance: What’s a no-appraisal home equity loan, and how do you qualify for one?