How to use home equity to finance life events
Solutions close to home

Whatever plans you have in mind, you can finance them using the equity in your home.

Read More

Make your home nicer and make your life better

At First American Bank, fixed-rate home equity loans come with low interest rates and no strings attached. You can use the money for anything from home remodeling to college tuition to paying off credit card debt. Flexible financing terms allow you to choose the repayment option that is best for you. Whether you are located in Illinois, Wisconsin, Florida, or beyond, we can help you leverage your home’s equity.

  • Fixed interest rate for the life of the loan
  • Know at the start how much you will be paying every month
  • Loan terms up to 120 months
  • No closing costs*
Home Equity Loan Rates

Rates Effective: 5.16.22
Rates and points are subject to change without notice.
Product Rate APR
Home Equity 5 Year Fixed
Terms and Conditions
5.625%5.625%
Home Equity 10 Year Fixed
Terms and Conditions
5.875%5.875%
Home Equity 5/20 Balloon
Terms and Conditions
6.000%6.000%
Subject to credit approval. Standard rates apply. *NO CLOSING COST OPTION: If at the time of closing you set up an AFT or ACH to make the monthly payment on your loan and within the first statement cycle elect electronic statements, we will pay the Third Party Fees and Charges associated with closing on your loan, including, but not limited to, appraisal, title, flood, credit report, stamp & tax, and recording fees (Third Party Fees and Charges). If at any time during the term of your loan you fail to maintain the AFT or ACH or an electronic statement, you agree to repay the Third Party Fees and Charges that we previously paid which may be added to the outstanding balance of your loan. If at the time of closing you do not set up an AFT or ACH to make the monthly payment on your loan, then you agree to pay the Third Party Fees and Charges at closing. Not available for investment properties or loans that fall outside our standard product, rate, term and underwriting guidelines.
Home Equity 5 Year Fixed

The information provided is based on a $50,000 home equity loan. The property is located in Chicago, Cook county in the State of IL. The property is an existing single family home and will be used as a primary residence. The rate lock period is 0 days and the assumed credit score is 740. These rates are subject to change without notice. Loan to Value must be less than or equal to 80.00%. For loans secured by a first lien on a dwelling, payments do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation will be greater. Subject to credit approval.

At a 5.625% interest rate, the APR for this loan type is 5.625%. The monthly payment schedule would be:

  • 59 payments of $957.95 at an interest rate of 5.625%
  • 1 payment of $957.72 at an interest rate of 5.625%

Home Equity 10 Year Fixed

The information provided is based on a $50,000 home equity loan. The property is located in Chicago, Cook county in the State of IL. The property is an existing single family home and will be used as a primary residence. The rate lock period is 0 days and the assumed credit score is 740. These rates are subject to change without notice. Loan to Value must be less than or equal to 80.00%. For loans secured by a first lien on a dwelling, payments do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation will be greater. Subject to credit approval.

At a 5.875% interest rate, the APR for this loan type is 5.875%. The monthly payment schedule would be:

  • 119 payments of $551.97 at an interest rate of 5.875%
  • 1 payment of $551.82 at an interest rate of 5.875%

Home Equity 5/20 Balloon

The information provided is based on a $50,000 home equity loan. The property is located in Chicago, Cook county in the State of IL. The property is an existing single family home and will be used as a primary residence. The rate lock period is 0 days and the assumed credit score is 740. These rates are subject to change without notice. Loan to Value must be less than or equal to 80.00%. For loans secured by a first lien on a dwelling, payments do not include amounts for taxes and insurance premiums, if applicable, and the actual payment obligation will be greater. Subject to credit approval.

At a 6.000% interest rate, the APR for this loan type is 6.000%. The monthly payment schedule would be:

  • 61 payments of $358.22 at an interest rate of 6.000%
  • 1 payment of $42,515.10 at an interest rate of 6.000%

[Office setting. Kelly Brizzolara is sitting behind her desk, with a couple, Matt and Gaby, sitting across from her.]

Kelly Brizzolara: I'm Kelly Brizzolara, a loan officer here at First American Bank. Today we're going to talk about the difference between a Home Equity Line of Credit and a Fixed Rate Home Equity Loan. A lot of people have a hard time understanding the difference because they're very similar and both use your home as collateral. Here's an example of how they differ. Let's take a look at Gaby and Matthew's situation.

Gaby: We are looking to remodel our kitchen and think we need a loan to get it done. But we're not quite sure what loan to go with. We've heard about fixed rate home equity loans and home equity lines of credit. What's the difference?

Kelly: Well, a fixed rate Home Equity Loan is a loan where you borrow a fixed amount from First American Bank at a fixed rate and make equal payments for the term of the loan.

[On screen text: Home Equity Loan = fixed rate, fixed term and fixed payments]

Kelly: When the term is over, if all payments have been made, the loan is paid off. Because it has a fixed interest rate, you won't have to worry about rate adjustments. A home equity line of credit, or HELOC, is a loan where we will work with you to determine a credit limit and you will then have access to use this credit as you see fit. Home equity lines of credit have variable rates, which means that the rate may change when the prime rate changes.

[On screen text: HELOC = variable rate based on prime.]

Kelly: You can borrow up to the limit of your line of credit, just enough to finish a project around the house or pay an unexpected bill. You can continue to borrow using the available line of credit throughout the life of the loan and pay interest only on the outstanding monthly balance. You can also choose to pay down the principal balance of the line of credit anytime and restore the balance available for you. At the end of the term, if you still have a balance, you must pay it in full or refinance.

Kelly: For a large project like the remodel of a kitchen where you know how much you need and you want to budget a fixed payment; you might consider a fixed-rate home equity loan.

Matt: We were also thinking about getting new appliances for the kitchen and not doing a big remodel. Would a fixed-rate home equity loan work for us too?

Kelly: Yes, but in that case if you are only doing a small job, you might consider a HELOC. A HELOC is a good loan for people who want flexibility, and you can draw on it anytime you need money.

[On screen text: HELOCs provide flexibility.]

Kelly: It's a perfect loan for unexpected financial emergencies, college tuition, a new car, or your new kitchen appliances. That credit limit is available to you for the entire term of the loan, so if you pay off your appliances and need more money later, you can simply use the home equity line of credit again.

Gaby: We're not sure how much we need to borrow. How are loan amounts determined?

Kelly: With any home loan, the amount you can borrow is based on several factors. Our underwriters evaluate your past credit history, the amount of income you earn in relation to how much you want to borrow, as well as the value of your home.

[On screen text: First step: Meet with a First American banker]

Kelly: Sitting with me today is the best first step, as we can determine how much you need to borrow and begin the loan application process.

Matt: So, which home equity product is the right one for us?

Kelly: I'd say in your case, a home equity line of credit might be a better fit for your projects. A new kitchen and new appliances and you're really cookin'!

Gaby: Thank you, First American Bank!

[First American Bank Logo]

[First American Bank tagline “We do more for your money!”]

[Copyright 2018 First American Bank – Member FDIC – Equal Housing Lender logo]

The routing number for First American Bank is 071922777.

The routing number for Health and Benefits Accounts (HSA, FSA, HRA, QTA) is 067015928.
Visit our branch locations page to find location near you and to see the hours of operation.
Opening your new account is easy. You can open your account online or visit any of our branch locations.
Your account number can be found on your monthly account statement.
Please visit any of our branches closest to you to change the name on your account.

View all FAQs