loanDepot Launches equityFREEDOM First-Lien HELOC Further Expanding Home Equity Product Suite
loanDepot (NYSE: LDI) has expanded its equityFREEDOM product suite to include a first-lien home equity line of credit (HELOC). This new offering targets the 38.5% of American homeowners without a mortgage, allowing them to borrow against their home's equity for large expenses or debt consolidation. The equityFREEDOM First-Lien 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. The product is currently available in seven states with plans for a national rollout by late 2024. This addition strengthens loanDepot's portfolio of products supporting customers throughout their homeownership journey.
loanDepot (NYSE: LDI) ha ampliato la sua gamma di prodotti equityFREEDOM includendo una linea di credito ipotecaria di primo grado (HELOC). Questa nuova offerta si rivolge al 38.5% dei proprietari di casa americani senza mutuo, consentendo loro di utilizzare l'equità della propria abitazione per spese consistenti o per la consolidazione dei debiti. Il equityFREEDOM First-Lien HELOC offre condizioni flessibili, inclusi un periodo di prelievo di tre anni e, nella maggior parte degli stati, un periodo di pagamento solo interessi di 10 anni seguito da un termine di rimborso ammortizzato di 20 anni. Il prodotto è attualmente disponibile in sette stati con piani per un lancio nazionale entro la fine del 2024. Questa aggiunta rafforza il portafoglio di prodotti di loanDepot a supporto dei clienti durante il loro percorso di proprietà immobiliare.
loanDepot (NYSE: LDI) ha ampliado su gama de productos equityFREEDOM para incluir una línea de crédito hipotecario de primer gravamen (HELOC). Esta nueva oferta está dirigida al 38.5% de los propietarios de viviendas estadounidenses sin hipoteca, permitiéndoles pedir prestado contra el capital de su hogar para gastos importantes o consolidación de deudas. El equityFREEDOM First-Lien HELOC ofrece condiciones flexibles, que incluyen un período de extracción de tres años y, en la mayoría de los estados, un período de pago solo de intereses de 10 años seguido de un término de reembolso amortizado de 20 años. El producto está actualmente disponible en siete estados con planes para un lanzamiento nacional a finales de 2024. Esta adición fortalece el portafolio de productos de loanDepot, apoyando a los clientes en su camino hacia la propiedad de vivienda.
loanDepot (NYSE: LDI)는 equityFREEDOM 제품군을 확장하여 1순위 주택 자산 대출(HELOC)을 포함했습니다. 이 새로운 제안은 모기지가 없는 미국 주택 소유자의 38.5%를 목표로 하며, 그들이 주택 자산을 활용하여 큰 비용이나 부채 통합을 할 수 있게 합니다. equityFREEDOM 1순위 HELOC은 3년의 인출 기간과 대부분의 주에서 10년의 이자만 납입하는 기간 후 20년의 원금 상환 기간을 포함한 유연한 조건을 제공합니다. 이 제품은 현재 7개 주에서 제공되며, 2024년 말까지 전국 출시 계획이 있습니다. 이 추가 제품은 고객의 주택 소유 여정을 지원하는 loanDepot의 제품 포트폴리오를 강화합니다.
loanDepot (NYSE: LDI) a élargi sa gamme de produits equityFREEDOM pour inclure une ligne de crédit hypothécaire de premier rang (HELOC). Cette nouvelle offre cible le 38,5 % des propriétaires américains sans hypothèque, leur permettant de prêter contre l'équité de leur maison pour de grandes dépenses ou la consolidation de dettes. Le equityFREEDOM First-Lien HELOC propose des conditions flexibles, incluant une période de tirage de trois ans et, dans la plupart des États, une période de paiement d'intérêt seulement de 10 ans suivie d'un terme de remboursement amorti de 20 ans. Le produit est actuellement disponible dans sept États avec des plans pour un déploiement national d'ici fin 2024. Cet ajout renforce le portefeuille de produits de loanDepot soutenant les clients tout au long de leur parcours vers la propriété.
loanDepot (NYSE: LDI) hat sein equityFREEDOM-Produktportfolio erweitert, um eine erste Hypothekendarlehenslinie (HELOC) einzuschließen. Dieses neue Angebot richtet sich an die 38,5% der amerikanischen Eigenheimbesitzer ohne Hypothek, die damit ihr Eigenkapital nutzen können, um große Ausgaben oder die Konsolidierung von Schulden zu finanzieren. Das equityFREEDOM First-Lien HELOC bietet flexible Konditionen, einschließlich eines drei Jahre dauernden Abhebungszeitraums und in den meisten Bundesstaaten einer 10-jährigen Zinsnur-Zahlungsphase, gefolgt von einer 20-jährigen amortisierten Rückzahlungsfrist. Das Produkt ist derzeit in sieben Bundesstaaten verfügbar, mit Plänen für einen nationalen Rollout bis Ende 2024. Diese Ergänzung stärkt loanDepots Produktportfolio, das Kunden während ihrer Reise zum Wohneigentum unterstützt.
- Expansion of product offerings with the new first-lien HELOC
- Targets a large market segment (38.5% of American homeowners without a mortgage)
- Flexible terms including three-year draw period and potential 10-year interest-only payment period
- Phased national rollout plan, currently available in seven states
- None.
Insights
loanDepot's introduction of the equityFREEDOM First-Lien HELOC is a strategic move to tap into a significant market segment. With
The timing of loanDepot's equityFREEDOM First-Lien HELOC launch is strategically sound. With homeowners sitting on record levels of equity and facing rising expenses, the demand for such products is likely to increase. The product's flexibility caters to various consumer needs, from home renovations to debt consolidation, potentially broadening its appeal. The initial rollout in seven states, including major markets like California and Florida, allows for a controlled expansion and market testing. This approach could help LDI refine its offering based on early adoption patterns before the planned national expansion by late 2024. The success of this product could significantly impact LDI's competitive position in the evolving home equity market.
The equityFREEDOM First-Lien HELOC introduces some legal considerations for both loanDepot and consumers. As a first-lien product, it takes priority over any subsequent liens, potentially affecting borrowers' future financing options. The mention of potential tax deductibility is prudently qualified, acknowledging the complexity of tax implications. The varying terms across states highlight the need for careful regulatory compliance. LDI must ensure clear disclosure of terms, especially regarding the interest-only period and subsequent amortization. As the product expands nationally, staying abreast of state-specific lending laws will be crucial. This product's legal framework could set a precedent for similar offerings in the industry.
"Homeowners are sitting on unprecedented levels of equity right now, particularly those who no longer carry a mortgage," said LDI President Jeff Walsh. "However, even without a mortgage, many feel the pinch of rising expenses, including insurance and property taxes, which put more pressure on monthly budgets. That’s why we’ve added the first-lien option to our equity lending portfolio to support our customers through the entirety of their homeownership journey, not just during the life of their mortgage."
The ability to tap into equity is a major advantage of homeownership as it can lower the cost of borrowing for large expenses - and, in many cases, the interest may be tax deductible2. Many HELOCs on the market today are second-lien loans, requiring homeowners to have an existing mortgage on their property. A first-lien HELOC is for borrowers who don’t have an existing mortgage on their house3.
The equityFREEDOM First-Lien HELOC allows such borrowers to access the equity in their homes with flexible terms which include a three-year draw period, and, in most states, a 10-year interest-only payment period followed by a 20-year amortizing repayment term4.
As part of its phased national roll out, loanDepot’s equityFREEDOM First-Lien HELOC is available now in
To learn more about loanDepot’s equityFREEDOM suite of home equity lending products visit https://getstarted.loandepot.com/equity-freedom.
About loanDepot
At loanDepot (NYSE: LDI), we know home means everything. That’s why we are on a mission to support homeowners with a suite of products and services that fuel the American Dream. Our portfolio of digital-first home purchase, home refinance and home equity lending products make homeownership more accessible, achievable, and rewarding, especially for the increasingly diverse communities of first-time homebuyers we serve. Headquartered in
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1 ResiClub Data: https://www.resiclubanalytics.com/p/record-number-mortgagefree-homeowners-provide-economic-cushion-amid-feds-fastest-ratehiking-cycle-fo
2 loanDepot encourages consumers to consult tax advisors for applicable requirements and details.
3 If a borrower defaults, the lender holding the first lien HELOC would generally have a primary claim on the property over other creditors.
4 In
View source version on businesswire.com: https://www.businesswire.com/news/home/20240821844028/en/
Media
Jonathan Fine
VP, Public Relations
(781) 248-3963
jfine@loandepot.com
Source: loanDepot, Inc.
FAQ
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