What Is a Home Equity Installment Loan?

A Home Equity Installment Loan (HEIL) is a loan that allows you to borrow money against the value of your home. You can use the money from the home equity loan for whatever purpose you require. HEIL is a fixed rate loan, meaning the interest rate stays the same throughout the life of the loan.

What is Home Equity?

Home equity is the value of your home minus the amount of money you have borrowed against the value, including mortgages and home equity lines of credit.


When you take out a HEIL, you receive the proceeds of the loan immediately after the loan closes. Over the term of the loan, you make monthly payments to pay off the loan. Similar to a car payment, the loan payment never changes.

Time Frame

Most home equity loans have a term of 15 to 30 years to repay the money you borrowed.


Many people use home equity loans for home improvements, paying down other debt, vacations and college tuition.

Tax Benefits

The interest is tax deductible as an itemized deduction on the first $100,000 if you are a joint tax filer or $50,000 if you are a single filer. If you use the money for home improvements, the limits increase to the interest on the first $1 million or $500,000, depending on your filing status.