Skip to content
  • Join PSECU
  • Refer a Friend
  • Rates
  • Find an ATM
  • Resources
  • Support
PSECU Logo
  • Explore Our Rates

    See today's checking, savings, certificate and individual retirement account (IRA) interest rates

    Have questions? Browse our FAQs
    • Account Types:
      • Checking Accounts
      • Savings Accounts
      • Money Market Accounts
      • Certificates
      • Individual Retirement Accounts (IRAs)
    • Banking Services:
      • For College Students
      • For Teens & Parents
      • For Youth & Parents
      • For Businesses
    • Quick Links:
      • Calculators
        Estimate payments, set savings goals and more
      • Overdraft Services
        Check out PSECU's approach to overdraft services and fees
      • Understanding Money Market Accounts
        Learn how you can increase your savings with greater dividends
  • Explore Our Rates

    See today’s credit card rates

    Have questions? Browse our FAQs
    • Card Types:
      • Classic Card
      • Founder's Rewards Card
      • Penn State Alumni Cards
      • Secured Visa® Card
      • Business Credit Cards
    • Card Services:
      • Balance Transfers
      • Card Comparison Guide
    • Quick Links:
      • Calculators
        Estimate payments, set savings goals and more
      • Dispute a Credit Charge
        Report unauthorized transactions on your card
      • Is a Balance Transfer Right for Me?
        Find out how consolidating can simplify your finances
  • Explore Our Rates

    See today’s auto loan, home equity product, mortgage, and personal loan rates

    Have questions? Browse our FAQs
    • Home & Auto:
      • Mortgages
      • Home Equity
      • Auto Loans
      • Recreational Vehicles
    • Personal & Business:
      • Personal Loans
      • Student Loans
      • Business Loans
    • Quick Links:
      • Calculators
        Estimate payments, set savings goals and more
      • Paying Your Loan
        See your loan payment options
      • Debt Consolidation
        Save money, simplify your budget and reduce stress
  • Become a Member

    Explore PSECU member benefits and learn about eligibility

    Have questions? Browse our FAQs
    • What We Offer:
      • Investing
      • Insurance
      • Auto Warranty
      • Medicare Insurance
      • Estate Planning
    • Quick Links:
      • Set Up a Free IRA in Pennsylvania
        Check out this six-step guide to start reaping tax benefits
      • Missing Out on Insurance Savings?
        Get tips on how to spot savings in your insurance coverage
  • Become a Member

    Explore PSECU member benefits and learn about eligibility

    Have questions? Browse our FAQs
    • Is PSECU Right for You?:
      • What's Digital-First Banking?
      • How We Serve Our Members
      • All Member Services
    • Quick Links:
      • Earn $300*!
        Open a new member account with PSECU and you can earn $300* in bonus cash when you meet promo requirements!
      • New Member Support
        Get the guidance you need to take control of your account
      • PSECU in the Community
        We’re not just about finances - we’re about making an impact.
Login
PSECU Logo
Login
  • Checking & Savings
      • Checking Accounts
      • Savings Accounts
      • Money Market Accounts
      • Certificates
      • Individual Retirement Accounts (IRAs)
      • For College Students
      • For Teens & Parents
      • For Youth & Parents
      • For Businesses
      • Calculators
        Estimate payments, set savings goals and more
      • Overdraft Services
        Check out PSECU's approach to overdraft services and fees
      • Understanding Money Market Accounts
        Learn how you can increase your savings with greater dividends
    Explore Our Rates

    See today's checking, savings, certificate and individual retirement account (IRA) interest rates

    Have questions? Browse our FAQs
  • Credit Cards
      • Classic Card
      • Founder's Rewards Card
      • Penn State Alumni Cards
      • Secured Visa® Card
      • Business Credit Cards
      • Balance Transfers
      • Card Comparison Guide
      • Calculators
        Estimate payments, set savings goals and more
      • Dispute a Credit Charge
        Report unauthorized transactions on your card
      • Is a Balance Transfer Right for Me?
        Find out how consolidating can simplify your finances
    Explore Our Rates

    See today’s credit card rates

    Have questions? Browse our FAQs
  • Loans
      • Mortgages
      • Home Equity
      • Auto Loans
      • Recreational Vehicles
      • Personal Loans
      • Student Loans
      • Business Loans
      • Calculators
        Estimate payments, set savings goals and more
      • Paying Your Loan
        See your loan payment options
      • Debt Consolidation
        Save money, simplify your budget and reduce stress
    Explore Our Rates

    See today’s auto loan, home equity product, mortgage, and personal loan rates

    Have questions? Browse our FAQs
  • Investing & Insurance
      • Investing
      • Insurance
      • Auto Warranty
      • Medicare Insurance
      • Estate Planning
      • Set Up a Free IRA in Pennsylvania
        Check out this six-step guide to start reaping tax benefits
      • Missing Out on Insurance Savings?
        Get tips on how to spot savings in your insurance coverage
    Become a Member

    Explore PSECU member benefits and learn about eligibility

    Have questions? Browse our FAQs
  • About PSECU
      • What's Digital-First Banking?
      • How We Serve Our Members
      • All Member Services
      • Earn $300*!
        Open a new member account with PSECU and you can earn $300* in bonus cash when you meet promo requirements!
      • New Member Support
        Get the guidance you need to take control of your account
      • PSECU in the Community
        We’re not just about finances - we’re about making an impact.
    Become a Member

    Explore PSECU member benefits and learn about eligibility

    Have questions? Browse our FAQs
  • Join PSECU
  • Refer a Friend
  • Rates
  • Find an ATM
  • Resources
  • Support
Routine maintenance is scheduled for 12 AM, Sunday March 16, 2025, and will take several hours to complete. During this timeframe, members will not be able to access digital banking, membership or loan applications, or our call center IVR menu. We apologize for any inconvenience.
We apologize for the inconvenience, but our application for membership is currently unavailable. We are currently working to resolve the issue.
You’re Leaving PSECU's Site

 
 

Select “Proceed” to continue to , or close this window to return to PSECU.com.

Proceed
  1. Back to Home
  2. Resource Center
  3. Home Ownership
  4. How Do I Get a Home...
Article
2 Minute Read

How Do I Get a Home Equity Loan in PA?

Share on email Share on facebook Share on linkedin Share on twitter

Home equity loans allow you to use the equity you’ve built up in your home as collateral for another loan. By getting a home equity loan, you can finance remodeling or pay off other large debts. As an added benefit, the interest may be tax deductible (a tax professional could help you in making this determination.)

Great, you may be thinking, but you may not know how to get a home equity loan in PA. Use this handy guide to walk you through the steps you generally take to secure your home equity loan.

Home Equity Loan vs. Home Equity Line of Credit

First, here are a few details about the two types of loans that are secured by your home’s equity:

  • A home equity loan, or real estate equity loan, is a lump sum you receive from your lender. You make fixed monthly payments on this loan over a fixed term until you pay it off.

  • A home equity line of credit (HELOC) is almost like a credit card. You have a fixed amount of equity you can draw on, and every time you take money out (also known as advancing your line), it draws from your total limit. Your repayment amount depends on how much money you’ve advanced. HELOCs usually have a variable rate.

You may have heard people refer to home equity loans as “second mortgages.” This is because they’re typically another lien on your home, subordinate to your first mortgage. But the process to get a home equity loan differs from a mortgage.

Do You Qualify for a Home Equity Loan?

The first step in the process of obtaining a home equity loan is to ensure you qualify for a loan. You need to figure out how much equity you have in your home. Although your lender will make the final calculations, you should have a basic understanding of how this figure is derived. To determine your equity, your lender will subtract how much you still owe on your home from the value of your home. Your home’s value is determined by the lender.

For instance, if a person has $50,000 left on their home loan, and the home appraises at $100,000, the homeowner has $50,000 in equity to potentially draw on.

Another concept to understand is your loan-to-value (LTV) ratio). A lender will allow you to borrow a percentage of the equity that is available. For example, if a homeowner wants a $20,000 loan, the equation would be: (20,000 + 50,000) / 100,000 = 70% LTV ratio.

How Do I Apply for a Home Equity Loan at PSECU?

At PSECU, we offer the convenience of applying for home equity loans online. There are no closing costs and no application fee.

We’ll run a credit check, which indicates whether you pay your current bills on time and handle your debt responsibly. If you have a lower credit score, it may impact whether you’re approved for an equity loan. In addition, we run a title search to see what debts or liens already exist on your property.

We determine the home’s value, which impacts your LTV ratio. After this step, you’ll learn if your home equity loan has been approved. Following approval, you’ll still have a few steps to complete to secure your loan or HELOC.

Signing the Papers for Your Home Equity Loan

When signing for your equity loan with any lender make sure you understand:

  • The term of the loan

  • The interest rate, and if it’s variable, what it’s based on

  • When your first payment is due

  • How to make your monthly payments; i.e., will you receive a bill in the mail or should you pay online?

Talk to Us About Home Equity Loans in PA

Are you ready to make the equity you’ve built in your Pennsylvania-based home work for you? We offer low rates and an easy application process for both home equity loans and HELOCs. Contact us to see if you qualify for a home equity loan.

Learn more about money management on our WalletWorks page.

RITM0026248 HELOC Flex Phase Two Blog CTA Banner - 815x335

 

The content provided in this publication is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by PSECU. PSECU does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. PSECU does not warrant any advice provided by third parties. PSECU does not guarantee the accuracy or completeness of the information provided by third parties. PSECU recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

By: PSECU
Need to talk to us directly?
800.237.7328
Routing #: 231381116
  • Facebook
  • LinkedIn
  • Twitter
  • Instagram
  • Pinterest
  • YouTube
Awards Designations
  • Get to Know Us:
    • What's Digital-First Banking?
    • How We Serve Our Members
    • Financials
    • PSECU for Employers
    • Careers We're Hiring!
    • Resource Center
    • PSECU in the Community
  • Quick Links:
    • Rates
    • Calculators
    • Downloadable Forms
    • Become a Member
    • Refer a Friend
  • Contact & Support:
    • Support
    • Browse FAQs
    • Resume an Application
    • Find an ATM
    • Contact Us
  • Download the App:
    • App Store
    • Play Store
  • Sitemap
  • Disclosures & Agreements
  • Terms of Use
  • Fraud Prevention
  • Privacy
  • © 2025 PSECU. All Rights Reserved.
  • NCUA Insured by NCUA
  • Equal Housing Lender Equal Housing Lender