loanDepot Adds Home Equity Loan to its equityFREEDOM Suite of Home Equity Products
July 15 2024 - 11:50AM
Business Wire
Enables homeowners to tap record levels of
equity while maintaining lower primary mortgage rates
loanDepot, Inc. ("LDI" or "Company") (NYSE: LDI), a leading
provider of home lending solutions that enables customers to
achieve their financial and homeownership goals, today introduced a
new home equity loan to its equityFREEDOM product suite. Americans
hold a record $32.7 trillion1 in home equity and of those who are
still paying a mortgage, 63% carry an interest rate below 4%2. The
equityFREEDOM Home Equity Loan, along with the equityFREEDOM Home
Equity Line of Credit (HELOC), gives those homeowners powerful
financial tools to lower their cost of borrowing without
sacrificing their current mortgage rate.
“Being a homeowner brings certain advantages, one of which is
access to more tools for managing your financial health and
wellness,” said LDI President Jeff Walsh. “Most Americans are
feeling the pinch of inflation. In fact, non-housing related
consumer debt has skyrocketed to nearly $5 trillion3 as families
lean on high-interest credit cards and personal loans to cover
their living costs. When used wisely, home equity borrowing can be
a sorely needed source of relief, which is why we’ve added to our
home equity lending portfolio with this new home equity loan.”
How consumers save vs. credit card debt4
With the average credit card interest rate in the country
sitting at more than 24%5, homeowners with $50,000 in credit card
debt could save more than $21,000 in interest over a three-year
period by opting for a home equity loan. And, in many cases, the
interest may be tax deductible.6
Credit Card
Home Equity loan7
Balance
$50,000
$50,000
APR
24.21%
9.99%
Interest paid over 3 years
$36,178
$14,604
ESTIMATED INTEREST
SAVINGS
$21,574
The equityFREEDOM Home Equity Loan application takes just
minutes and lets customers access the equity in their homes in a
lump sum through a 20-year, fully amortizing loan with no
prepayment penalty. This loan can be used for large expenses such
as home renovations, consolidation of high-interest credit card
debt and personal loans, medical bills, or college tuition. It
allows homeowners to borrow up to $350,000, based on their credit
profile and their home’s combined loan-to-value ratio (CLTV), with
a maximum of 90%, meaning a borrower may utilize up to 90% of the
total available equity in their property between their first and
second mortgage.
The equityFREEDOM Home Equity Line of Credit (HELOC) can take
customers from quote to close in as little as three weeks, with
flexible terms providing access to equity with a three-year draw
period and, in most states, a 10-year interest-only payment period
followed by a 20-year amortizing repayment term8. Homeowners may
borrow up to $250,000, with a maximum of 90% CLTV.9
Said loanDepot Chief Education Officer Alec Hanson, “Every
borrower has their own unique financial considerations. One may
want the stability of the home equity loan’s fixed monthly loan
payment, while another may need the flexibility of the HELOC, with
the ability to pay down and redraw over time. For this reason, it’s
really critical that borrowers work with a reputable mortgage
professional who offers different product options and the
consultative wisdom borrowers need to make the right decision for
their short and long-term financial goals.”
loanDepot will continue to expand its equityFREEDOM suite of
home equity lending products with a first lien home equity line of
credit due to launch later this summer.
About loanDepot
loanDepot (NYSE: LDI) is a leading provider of lending solutions
that make the American dream of homeownership more accessible and
achievable for all, especially the increasingly diverse communities
of first-time homebuyers, through a broad suite of lending and real
estate services that simplify one of life's most complex
transactions. Since its launch in 2010, the company has been
recognized as an innovator, using its industry-leading technology
to deliver a superior customer experience. Our digital-first
approach makes it easier, faster and less stressful to purchase or
refinance a home. Today, as one of the largest non-bank lenders in
the country, loanDepot and its mellohome operating unit offer an
integrated platform of lending, loan servicing, real estate and
home services that support customers along their entire
homeownership journey. Headquartered in Southern California and
with hundreds of local market offices nationwide, loanDepot’s
passionate team is dedicated to making a positive difference in the
lives of their customers every day.
1 As of Q1 2024, according to the Federal Reserve Bank of St.
Louis, available at
https://fred.stlouisfed.org/series/OEHRENWBSHNO. 2 The Lock-In
Effect of Rising Mortgage Rates, FHFA Staff Working Paper 24-03
(March 2024) available at
https://www.fhfa.gov/sites/default/files/2024-03/wp2403.pdf. 3 As
of Q1 2024, according to the Federal Reserve Bank of New York,
Center for Microeconomic Data, available at
https://www.newyorkfed.org/microeconomics/hhdc. 4 Average credit
card APR for new card offers = 24.84% per Lending Tree on 7/8/24;
HELoan example based on a 20-year fixed rate 2 mortgage with an
initial balance of $50,000. 5 LendingTree data available at
https://www.lendingtree.com/credit-cards/study/credit-card-debt-statistics/.
6 loanDepot encourages consumers to consult tax advisors for
applicable requirements and details. 7 Unlike a credit card, home
equity loans and home equity lines of credit require borrowers to
pledge their homes as collateral for the debt. 8 In Texas,
loanDepot’s HELOC includes a three-year interest only period
followed by a 27-year repayment period. 9 loanDepot advises
consumers that credit criteria, exclusions, and limitations apply;
not all property types are eligible collateral; loanDepot’s
equityFREEDOM products may not be available in all states; and
terms and conditions are subject to change.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240715702489/en/
Jonathan Fine VP, Public Relations (781) 248-3963
jfine@loandepot.com
loanDepot (NYSE:LDI)
Historical Stock Chart
From Aug 2024 to Sep 2024
loanDepot (NYSE:LDI)
Historical Stock Chart
From Sep 2023 to Sep 2024