Spring EQ

Spring EQ is a home equity lender that offers home equity loans and home equity lines of credit for existing homeowners. It focuses specifically on home equity products rather than purchase mortgages or refinancing.

A home equity loan allows you to borrow a lump sum against the equity in your home, repaid at a fixed rate over a set term. A home equity line of credit, known as a HELOC, is a revolving credit line secured against your home's equity. HELOCs typically carry a variable interest rate, a draw period during which you can borrow and repay, and a subsequent repayment period. Both products use your home as collateral, meaning failure to repay could lead to foreclosure.

Spring EQ operates primarily online and commonly works with borrowers across a range of credit profiles, including some with lower credit scores than traditional lenders might accept. The rates offered will depend on your credit profile, loan-to-value ratio, and other factors.

Home equity borrowing can be a relatively lower-rate way to access cash compared to personal loans or credit cards, because the loan is secured against your property. However, converting unsecured debt into secured home equity debt shifts risk onto your home, and this tradeoff should be considered carefully.

Before using home equity for any purpose, consider whether the reason for borrowing justifies putting your home at risk. Renovations that add home value, consolidating high-interest debt with a clear repayment plan, and genuine emergencies are commonly cited uses. Borrowing against home equity to fund discretionary expenses involves risk.

Compare Spring EQ's rates, origination fees, closing costs, and terms against those of banks and credit unions in your area before deciding.