loanDepot Expands Equity Loan Options

loanDepot expanded its equityFREEDOM portfolio to help American homeowners access their tappable equity.

The expansion adds 10- and 30-year fixed-term options to its current 20-year fixed-rate home equity loan, complementing its first- and second-lien HELOCs.

Borrowers access the equity in their homes in a lump sum in one of three fully amortizing loan terms, while the HELOC offers flexible terms including a three-year draw period, and, in most states, a 10-year interest-only payment period followed by a 20-year amortizing repayment term.

loanDepot company leaders say the new offerings give homeowners locked into rates below 5% more options for leveraging their home equity. Equity nationwide is at historic highs.

“Homeowners today enjoy unprecedented levels of equity, and by continuing to expand our home equity lending options, we’re giving them the flexibility they need to find the best solution for their circumstances,” said LDI President Jeff Walsh. 

“We are a fully integrated one-stop-shop for all things home equity that helps support our customers’ entire homeownership journey and provides more options to help achieve their financial goals.”

Homeowners can apply for equityFREEDOM in minutes online and can borrow up to $400,000 based on their credit profile and the home’s combined loan-to-value ratio.

There are no prepayment penalties, and loanDepot says some borrowers may not need a new home appraisal. 

Launched in 2010, California-based loanDepot prioritizes a “digital-first” approach to lending. It is one of the largest non-bank lenders in the U.S. and operates hundreds of offices across the nation.

The company recently promoted sales leader Phil Iossa to lead the Tri-State territory of New York, Connecticut, and New Jersey as regional vice president of in-market retail, and named former MLB relief pitcher Bart Evans as its new regional VP for the Southeast.