Home equity loans in Washington DC

A home equity loan is a second mortgage behind the one you already have. You borrow a lump sum at a fixed rate and repay it on a set schedule over a set term. Your first mortgage keeps the same rate, balance and payment, so you get cash without giving up a low first-mortgage rate.

A cash-out refinance replaces your existing mortgage with one larger loan, so your whole balance moves to today's rates. A home equity loan leaves the first mortgage alone and adds a second, smaller loan. If your first-mortgage rate is well below today's rates, refinancing the whole balance to reach your equity can cost more in interest than a second loan, even though the second loan's rate is higher, because that higher rate applies only to the smaller amount.

A home equity loan is one lump sum at a fixed rate with the same payment each month. A HELOC is a revolving credit line you draw on as needed, usually at a variable rate, so the payment changes with the market. A home equity loan fits a known one-time cost; a HELOC fits staged or uncertain spending.

Lenders use combined loan-to-value: your first mortgage plus the new second loan, divided by the appraised value. That combined figure sets your limit, so the more equity you have, the larger the second loan can be. Your credit profile and the property type also affect the limit. Your loan officer runs the figures for your address and balance.

No. DC fully exempts security instruments on residential property of five units or fewer, and the statute makes no distinction between a first and a second deed of trust (D.C. Code § 42-1102(21)). A second lien qualifies on the same terms as a refinance, with the same condition: a notarized ROD Form 21 affidavit attached at recording, which your settlement agent files. In Maryland, by comparison, a second lien is new money and is taxed.

Yes. Borrowing against your home is not a sale and does not trigger a reassessment, so your DC homestead deduction and property-tax status stay the same.

Interest on a home equity loan is generally deductible when the money is used to buy, build or substantially improve the home securing the loan, subject to the overall mortgage-interest limits. Used for other purposes, such as paying off debt or tuition, it generally is not. Confirm your own situation with your CPA.

A second lien generally closes faster than a full refinance because less needs to be underwritten. The timeline still depends on the appraisal and on how quickly you send documents. Your loan officer gives you a closing date after reviewing your file.

District Mortgage arranges home purchase, refinance, and cash-out loans on property in Washington, DC. One licensed loan officer handles your loan from application to closing, and our current rates are published on our rates page with the APR and effective date. NMLS #2819502 — verify us at nmlsconsumeraccess.org.

No. We are licensed in the District of Columbia only, so the property has to be in DC. We cannot accept an application or a pre-qualification request for a property in Maryland, Virginia, or any other state. If your property is elsewhere, nmlsconsumeraccess.org will show you licensed originators in that state.

Alan Trombley, Principal Mortgage Loan Originator, NMLS #2805044, is your loan officer. He is licensed in the District of Columbia and handles every file from pre-qualification through closing.

Our rates page is the source for our pricing. It shows an effective date, the APR next to every rate, and the borrower assumptions each example is priced on. Rates shown anywhere on this site are current rate examples priced for the borrower assumptions published with them. They are not offers of credit or commitments to lend, and pricing changes daily. Anyone quoting a rate from us should cite the effective date it was published with.