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WATERMARK HOME EQUITY LENDING

Fixed-Rate Home Equity Loans

Q: Is a home equity loan fixed or variable?

Fixed. Your interest rate and your monthly principal and interest payment are locked in and will remain predictable for the entire life of the loan.

Q: Will this change my first mortgage rate?

No. A Home Equity Loan is a "closed-end second mortgage." This means it sits behind your primary mortgage, leaving your existing low rate completely untouched.

Q: How is the payment calculated?

Based on your lump sum and term. Because you receive all your cash on day one, your payment is calculated to pay off the principal and interest evenly over the term you select (e.g., 10, 15, or 20 years).

Q: How long does the process take to get my funds?

Typically 2 to 4 weeks. While every situation is unique, a second mortgage generally moves faster than a traditional purchase. The exact timeline depends largely on how quickly we can verify your income and complete the property valuation.

Q: Can I use it for debt consolidation?

Yes. Paying off high-interest, variable credit card debt with a lower, fixed-rate home equity loan is one of the most common and financially strategic ways to use this product.

Q: Are there closing costs for a Home Equity Loan?

Yes, but they are generally lower than a full refinance. Because it is a real estate transaction, standard costs like title search, credit reporting, and appraisal fees apply. However, these can often be rolled into the loan amount so you bring zero cash out-of-pocket to closing.

Q: Do I need a full home appraisal?

It depends on your requested loan amount and property. In many cases, we can use an Automated Valuation Model (AVM) or an exterior "drive-by" appraisal, which speeds up the process. For larger loan amounts or unique properties, a standard interior appraisal may be required.

Q: Are the interest payments tax-deductible?

They can be. Under current IRS rules, the interest is often deductible if you use the loan funds specifically to "buy, build, or substantially improve" the home that secures the loan. If you use it for debt consolidation or other expenses, it typically isn't. Always consult a licensed CPA regarding your specific tax situation.

Q: What happens to this loan if I sell my house?

It gets paid off at closing. Just like your primary mortgage, the remaining balance of your Home Equity Loan is simply paid off using the proceeds from the sale of your property.

Q: How does this compare to the Expanded Access program?

It comes down to loan structure and total cash. A traditional Home Equity loan is a standard fixed-rate product. Expanded Access is a proprietary 5/1 hybrid ARM that converts to a 20-year fixed loan, specifically designed to let you pull up to 100% of your home's combined loan-to-value (CLTV).

Get a fixed-rate lump sum with a predictable monthly payment—all without refinancing or touching the low rate on your current mortgage.

The Fixed-Rate Advantage

10- Year

Terms

Choose the timeline that fits your budget

Lump Sum

Get all your funds on day one

Impact

On your existing first mortgage rate

      
   Watermark Capital, Inc.
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   Victor Calaguian 
 
 
 
 Trustindex verifies that the original source of the review is Google. We had an outstanding experience working with Martin and his team at Watermark while purchasing our first home. As first-time homebuyers, the process felt overwhelming at times, but Martin guided us every step of the way with professionalism, patience, and expertise. His team was responsive, professional, and kept everything moving smoothly from start to finish. Their communication and attention to detail made what could have been a stressful process feel easy and manageable. We are so grateful for Martin, Dana, and the entire Watermark team for helping us buy our first home. We couldn't have asked for a better lending partner and would highly recommend them to anyone looking for a knowledgeable and customer-focused mortgage team. Thank you for helping make this milestone possible!
  
 
      Posted on Google  
   
   Adam Helfand 
 
 
 
 Trustindex verifies that the original source of the review is Google. Ron and Dana were outstanding in their attention to detail, professionalism, and assistance.
  
 
      Posted on Google  
   
   Thu Nguyen 
 
 
 
 Trustindex verifies that the original source of the review is Google. I'm glad I found this lender. They offered a competitive rate and reasonable closing costs. Mike and Dana were very helpful throughout the home-closing process. They responded quickly to my questions, and the loan closed quickly as well.
  
 
      Posted on Google  
   
   Ally 
 
 
 
 Trustindex verifies that the original source of the review is Google. Worked with Ron Trejo to sort a refinance when I was buying an ex out of a house. He was very patient as the process (due to issues on my end with the ex) was dragged out a bit longer than it should have been. Definitely recommend, and I would refinance through them in the future!
  
 
      Posted on Google  
   
   Jessica Samuel 
 
 
 
 Trustindex verifies that the original source of the review is Google. Douazong Lee Was amazing through out the process. She was very honest and trustworthy. She was always available to help. She gave us the best rate and we are very happy.
  
 
      Posted on Google  
   
   Jack H 
 
 
 
 Trustindex verifies that the original source of the review is Google. The Finest Customer Service ... Period! I had the good fortune to reach Edie, Senior Servicing Manager for the bank when I had questions about our mortgage. She was one of the most knowledgeable financial professionals I have ever spoken with. She was preparing for an important meeting (which usually results in a transfer to another person/department). Did this happen? ... NO it did not. Despite her need for uninterrupted focus, she took my call, never made me feel rushed, and  answered all my questions ... which took a good 15 minutes out of her day. One of the qualities I relished most about Edie was her enthusiasm and sense of humor. I felt like I was speaking with a good friend that really cared about me. I wish all my interactions were like that. Edie even went so far as to email me all the  documents that I needed AND gave me her direct line, just in case I had more questions ... Who does that?? ... Clearly someone that loves their job and puts the bank's customers first. Watermark Capital is lucky to have Edie! If I could give her 10 stars I would. She's just that good. PS. If you're looking for an exceptional bank ... look no farther than Watermark Capital. I've had my mortgage with them for years and they are one of the most responsive and helpful banks I have ever dealt with.
  
 
      Posted on Google  
   
   Gib Fugate 
 
 
 
 Trustindex verifies that the original source of the review is Google. My wife and I recently worked with Douazong Lee and Stephanie Marroquin and our experience could not have been more courteous, insightful and professional. Not only did we complete our mortgage refinance in less than a month but the interest rate and closing costs were the best we could find. We highly recommend Watermark Capital, Inc and Douazong and Stephanie! Gib and Jane Fugate, West Lafayette, IN
  
 
      Posted on Google  
   
   Daniel Wernicke 
 
 
 
 Trustindex verifies that the original source of the review is Google. This is the second time I’ve refinanced with Watermark and, in both instances, they offered the best rate and were quick to close. Mike Greenberg and Dana Chupp are a breeze to work with and really do put in the effort to provide excellent service. They have a secure online portal for submitting and reviewing financial docs which gives me peace of mind that sensitive info isn’t kept in someone’s email inbox. I wouldn’t hesitate to refinance with Watermark again.
  
 
      Posted on Google  
   
   Sean Kittridge 
 
 
 
 Trustindex verifies that the original source of the review is Google. We worked with Ron Trejo at Watermark to refinance our mortgage, and it was an extremely positive experience. Ron was honest, knowledgeable, and always available when we had questions about numbers or next steps. It's a big decision, but Ron and Watermark made it a pleasant one.

Range of Terms

Scale your fixed monthly payment to your budget with 10 to 30-year terms.

Flexible Credit Options

Our in-house underwriting reviews your full financial picture.

Debt Consolidation

Consolidate high-interest debt into one predictable monthly payment.

(see Licenses page for state availability)

HOW IT WORKS

Stability of a Fixed-Rate Second

A Home Equity Loan delivers your funds all at once as a single lump sum. Because it features a fixed interest rate and a set term, your principal and interest payments remain exactly the same for the life of the loan. This gives you absolute predictability for your budget, allowing you to fund major expenses or consolidate debt without the uncertainty of fluctuating market rates.

How to Choose: Line vs. Lump Sum

HELOC (Line of Credit)

How you get cash:

A reusable credit limit you can draw from as needed.

How interest works:

You only pay interest on the exact amount you actively use.

Flexibility:

Borrow, repay, and redraw funds repeatedly during your draw window.

Best for:

Ongoing home renovations, college tuition, or an emergency safety net.

Home Equity Loan

How you get cash:

A single, full lump-sum payout at loan closing.

How interest works:

You pay interest on the entire loan amount starting on day one.

Flexibility:

One-time funding with a fixed, predictable monthly payment.

Best for:

A single large expense or consolidating existing high-interest debt.

Tailored Home Equity Solutions

Traditional retail banks rely on rigid, automated checklists. If your income structure or property type doesn’t fit perfectly into their box, they decline the loan. Our fixed-rate second-mortgage programs are built to solve complex scenarios.

Self-Employed / Business Owner

No Tax Returns Required

Qualify using your business or personal bank statements rather than traditional tax returns. Perfect for entrepreneurs and 1099 contractors whose write-offs understate their true income.

Real Estate Investors

Rental & Investment Properties

Tap the equity in your non-owner-occupied rentals (SFR, 1-4 units, or duplexes). We offer DSCR paths that qualify you based on the property’s rental cash flow instead of your personal income.

Condominium Owner

Non-Warrantable Condos

Declined because your HOA has litigation, low owner-occupancy, or inadequate reserves? We have specialized second-lien options designed specifically for non-warrantable projects.

Flexible Underwriting

Unique Credit Profiles

We look at the whole financial picture. By factoring in your available home equity, residual income, and reserves, we offer options for a range of credit profiles that automated systems turn away.

Who is this for?

In the interest of transparency, our fixed-rate Home Equity Loan programs are built for the following homeowner profiles:

Borrowers looking to fund a single, large planned expense, such as a major home improvement project or debt consolidation.
Homeowners who want a predictable, fixed monthly payment that will remain exactly the same for the life of the loan.
Borrowers who want to preserve their existing low-rate first mortgage while still accessing their home's equity.
Those looking to swap high-interest, variable-rate credit card debt for a single, lower-interest fixed installment payment.
Property owners who prefer receiving their funds upfront as a 100% lump sum rather than a revolving credit line.

Watermark Home Equity vs. Typical Lenders

Don’t let a rigid retail bank dictate your financial options. Our specialized underwriting gives you access to your equity where traditional lenders often say no.

Feature	Typical Lenders	Watermark Home Equity
Income Verification	Strict W-2s and 2 years of tax returns	Bank statement qualification for self-employed
Eligible Properties	Primary residences and standard condo	Primary, investment properties, and non-warrantable condos
Interest Rate Stability	High-interest variable credit card or personal loan debt	100% fixed-rate options for predictable monthly payments
Underwriting Model	Automated algorithms and strict checklists	In-house, common-sense manual underwriting
Loan Amounts	Standard institutional caps	Higher loan amounts available for qualified borrowers

*Home Equity Loans are fixed-rate closed-end second mortgages subject to borrower qualification, credit approval, and equity availability. Stated underwriting exceptions, such as bank statement qualification, business-purpose DSCR options, and non-warrantable condo approvals, are subject to specific program guidelines and do not constitute a guarantee of loan approval. Available fixed-rate options, amortization terms, and maximum loan amounts vary by state and individual risk profile. Watermark Capital, Inc. is an Equal Housing Lender, NMLS #1838.

Frequently Asked Questions

Is a home equity loan fixed or variable?

Fixed. Your interest rate and your monthly principal and interest payment are locked in and will remain predictable for the entire life of the loan.

Will this change my first mortgage rate?

No. A Home Equity Loan is a “closed-end second mortgage.” This means it sits behind your primary mortgage, leaving your existing low rate completely untouched.

How is the payment calculated?

Based on your lump sum and term. Because you receive all your cash on day one, your payment is calculated to pay off the principal and interest evenly over the term you select (e.g., 10, 15, or 20 years).

How long does the process take to get my funds?

Typically 2 to 4 weeks. While every situation is unique, a second mortgage generally moves faster than a traditional purchase. The exact timeline depends largely on how quickly we can verify your income and complete the property valuation.

Can I use it for debt consolidation?

Yes. Paying off high-interest, variable credit card debt with a lower, fixed-rate home equity loan is one of the most common and financially strategic ways to use this product.

Are there closing costs for a Home Equity Loan?

Yes, but they are generally lower than a full refinance. Because it is a real estate transaction, standard costs like title search, credit reporting, and appraisal fees apply. However, these can often be rolled into the loan amount so you bring zero cash out-of-pocket to closing.

Do I need a full home appraisal?

It depends on your requested loan amount and property. In many cases, we can use an Automated Valuation Model (AVM) or an exterior “drive-by” appraisal, which speeds up the process. For larger loan amounts or unique properties, a standard interior appraisal may be required.

Are the interest payments tax-deductible?

They can be. Under current IRS rules, the interest is often deductible if you use the loan funds specifically to “buy, build, or substantially improve” the home that secures the loan. If you use it for debt consolidation or other expenses, it typically isn’t. Always consult a licensed CPA regarding your specific tax situation.

What happens to this loan if I sell my house?

It gets paid off at closing. Just like your primary mortgage, the remaining balance of your Home Equity Loan is simply paid off using the proceeds from the sale of your property.

How does this compare to the Expanded Access program?

It comes down to loan structure and total cash. A traditional Home Equity loan is a standard fixed-rate product. Expanded Access is our proprietary 25-year loan: a 5-year interest-only adjustable period, converting to a 20-year fixed-rate amortizing loan, designed to reach up to 100% CLTV.

Reviewed by Nick Joutz

Founder, Principal | NMLS #9220

Ready to put your home's equity to work?

Experience a frictionless, advisor-led process with our in-house equity specialists. No hard credit pull required to see your options.

Tell us whether you’re looking to fund a renovation, consolidate debt, or cover a major expense.

Our dedicated team will review your property’s value and calculate your exact borrowing power.

Get a clear, competitive quote and a frictionless roadmap to funding your lump sum.

Legal & Compliance Disclosures: Traditional Home Equity Loans are fixed-rate, closed-end second mortgages subject to borrower qualification, credit approval, underwriting guidelines, and available equity. Unlike a revolving line of credit, a traditional home equity loan provides a single lump-sum payout with a fixed, predictable monthly payment for the life of the loan. Expanded Access is our proprietary 25-year loan: a 5-year interest-only adjustable period, converting to a 20-year fixed-rate amortizing loan, designed to reach up to 100% CLTV. Available fixed-rate options, amortization terms, and maximum loan amounts vary by state and specific program selection.

State Availability & Servicing: Watermark Home Loans lends in most U.S. states. For our full state licensing footprint, see the Licenses page. Watermark Capital, Inc. sells and services Fannie Mae, Freddie Mac, and Ginnie Mae loans. Proprietary second-mortgage loans, including the products described on this page, are not serviced by Watermark; servicing transfers after closing.

Credit Inquiries: Submitting the initial buying power form does not trigger a hard credit inquiry. A hard credit pull is only required when you choose to submit a formal mortgage application.

Watermark Capital, Inc. is an Equal Housing Lender. NMLS #1838.