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Accessing Your Home Equity: EAGL Products 101

What's an Equity Access Granted Loan (EAGL)?

Our EAGL products are exclusive, only from JFQ Lending, home equity loans that we engineered to fix some of the gaps left by traditional Home Equity Line of Credit (HELOC) products. We saw our clients sitting on more equity than ever in their homes as US homeowners watched their home values rise by double-digit percentages across the country. The question we started hearing every day was "How can I access more of my home's equity?" and we had the opportunity to create a solution.

What Sets the EAGL Apart From Other Home Equity Loans?

We noticed there were relatively few types of Home Equity Loans out there, but one of the most common was the Home Equity Line of Credit or HELOC that we already offered. Getting a HELOC involves creating a secondary loan (sometimes referred to as a subordinate lien) behind your current first mortgage. Since we were able to secure historically-low interest rates for our clients over the past few years, one of the benefits of getting a 2nd mortgage is that it does not involve changing the terms of their current first mortgage.

Our EAGL products are also 2nd mortgages and they simply create another separate monthly payment on their own terms. It's these loan terms that help put the EAGL 100 and EAGL 133 products in a class by themselves:

  • The EAGL is a close-ended second lien with a 25-year term*.
  • The first 5 years are an Interest-Only Adjustable Rate Mortgage (ARM) that will adjust annually after the first 12 months*.
  • Your interest rate will not increase or decrease on the first change date by more than 2% from the initial interest rate. After the initial adjustment period, your interest rate will not increase or decrease by more than 2% per year*. 
  • Your interest rate cannot increase by more than 5% above the initial interest rate over the life of the loan, unlike a Home Equity Line of Credit (HELOC) that has a lifetime cap of 18% (maximum percentage the rate can adjust during the life of the loan)*.
  • The ARM Program will convert to a fixed interest rate at the 5th change date, for the remaining loan term, and will consist of regular monthly payments of principal and interest for the remaining 20 years*.

Both JFQ Lending HELOCs and EAGLs typically have a quick and streamlined review and approval process. What's truly unique to JFQ Lending's EAGL products is the ability to access up to 100% of your home's value for virtually any purpose and up to 133% if you're reinvesting in approved home renovations.  

 

 

   Consolidate Debt

With inflation stretching your income even more now, save money monthly by consolidating your higher-interest debts into one lower monthly payment using the equity you have built into your home. Right now, our EAGL 100 Second Mortgage can offer you low, interest-only payments during the first 5 years that will have an adjustable rate* (followed by a 20-year term to pay it back in full at a fixed rate and payment).

 

    Keep Your First Mortgage

If you have a great rate on your home mortgage right now that you don't want to sacrifice with a cash-out refinance, then a close-ended home equity loan like our EAGL 100 and EAGL 133 may be your go-to option for tapping into the cash in your home. Unless you plan on selling your home, there's no simpler way to access this much of your home's equity.

  

    Fund What Matters Most To You

Whether it's upcoming college tuition, your down payment on a vacation home, or start-up capital for a new business, you may be able to use your home's equity to pay for these important expenses. You may even be able to replenish your savings account or rainy day fund by getting your down payment back on your recent home purchase.

  

    Turn Your House Into Your Dream Home

If you're ready for pro-level renovations, remodeling, additions, or even a backyard oasis complete with a swimming pool, our EAGL 133 loan product is helping JFQ Lending clients tap into up to 133% of their home's value to turn a house into a dream home.

 

How Do You Know if You Qualify for an EAGL?

We'll highlight a few of the key criteria and guidelines we have for our EAGL products, but you'll definitely want to speak with one of our licensed Loan Officers for specific questions and to get the application process started!

  • Loan amounts range from $70K to $250K.
  • Minimum Credit Score (FICO®) of 660.
  • 25-year term; with a 5-year interest-only ARM followed by a 20-year term of monthly principal & interest payments.*
  • EAGL 100 is for funding any loan purpose, except for purchasing the home that's securing the loan.
    • Primary residences must be owner-occupied at least 30 days prior to application.
    • Second homes are eligible.
  • EAGL 133 is for funding home improvement projects only, including major appliances as part of a kitchen remodel. Fully executed contracts with valid/verifiable contractor's license info are required and bids or paid receipts within 60 days of application may be acceptable.
    • Primary residences only, and you must occupy the property at least 30 days prior to application.
  • Eligible properties include most single-family detached, duplex, condominium, townhouse, and planned unit development properties.

 

Get Started

This offer is for the EAGL 100 and EAGL 133 Second Lien Programs. All other offers will have different terms.

*The advertised loan is a 5-Year Interest-Only Adjustable Rate Mortgage (ARM) followed by a 20-Year amortizing term. The total term of the loan is 25 years. The Interest-Only period is for the first 5 years of the loan and will adjust annually based on a margin and index. After the Interest-Only Period ends, the ARM will convert to a Fixed Rate Mortgage for the remaining 20-year loan term with a regular monthly payment of both principal and interest. The Annual Percentage Rate (APR) for the initial Interest-Only Adjustable Rate Mortgage (ARM) period is 8.050% based on a 5.99% introductory rate with a $240,000 loan amount. The APR example is for a variable interest rate. Click here for a full payment example. Example is based upon a FICO Score of 800. A minimum FICO Score of 660 on a primary residence is required for the EAGL 100 and EAGL 133 Programs. The actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by JFQ Lending, LLC. Not available in all states. Rate is as of August 19, 2022 and is subject to change at any time without notice. JFQ Lending, LLC, NMLS ID# 1639493, is not affiliated with any government agency.

HOW YOUR PAYMENT CAN CHANGE (“Worst Case Scenario”). Your payment can change every 12 month(s) based on changes in the loan term, interest rate, or loan balance. For example, on a $10,000 loan with a 300 month term and an initial rate of 4.990% the maximum amount that the interest rate can rise under this ARM program is 5.000 percentage points above the initial interest rate to 9.990 percent and the payment can rise from a first-year payment of $41.58 to a maximum of $96.44 in month 61. To see what your payment would be, divide your mortgage amount by $10,000, then multiply the monthly payment by that amount. For example, the monthly payment for a new loan amount of $60,000 would be $60,000 divided by $10,000 = 6. Multiply the payment amount by this number, e.g., 6 x $41.58 = $249.48.

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