Home Equity Loans in Scranton, PA

A home equity loan is a second mortgage that pays you one lump sum at closing and is repaid on a set schedule, usually at a fixed rate. Your first mortgage stays exactly as it is. For Scranton homeowners with a single, known expense, this closed-end loan offers a clear borrowing amount, a payment that typically does not change, and a firm date when the debt is gone.

Want a straight answer?

Call to speak with a licensed loan officer about home equity loans in Scranton. Programs vary by borrower, property and investor.

Call (888) 912-6746 Apply Online Now

Second mortgages and equity in Scranton

403Closed-end second loans (2024)

53%Homes with no mortgage

$158,100Median home value

927HELOCs (2024)

In 2024, lenders made 403 closed-end subordinate-lien loans (home equity loans and other second mortgages) and 927 HELOCs in Lackawanna County. Roughly 53% of owners in Scranton own their home free and clear, which changes how a home equity loan is structured.

How a lump-sum second mortgage works

With a home equity loan, the lender records a second lien against your property and pays out the full loan amount after closing. There is no line to draw from later. If you need more money down the road, you would apply for a new loan.

Repayment begins right away and usually follows a fixed schedule, so principal and interest are paid down together from the first installment. Because the rate on most home equity loans does not adjust, the payment stays steady from start to finish. That predictability is the core appeal for households that budget carefully and want to know exactly when the debt will be gone.

Start hereApply Online Now

Start your application in a few minutes. A licensed loan officer reviews it and follows up with your options.

Takes a few minutes
Reviewed by a licensed loan officer
No obligation to proceed

Prefer to talk first? Call (888) 912-6746. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.

Lien position and combined loan-to-value

When you add a second mortgage, two lenders now have a claim on your house. The first mortgage holder stands at the front of the line. The home equity lender stands behind it. If you later refinance your first mortgage, the second lender usually must agree to stay in second place, a step called subordination.

To decide how much to lend, the lender adds your first mortgage balance and the proposed new loan, then compares that sum with the appraised value. This combined loan-to-value figure must stay under the lender's limit, which varies by lender, occupancy and credit profile. More equity means more room to borrow.

Who this tends to fit

You have enough equity left after counting your first mortgage balance
You want a payment that stays the same from the first installment to the last
You prefer a firm payoff date over an open-ended line of credit
You have a signed contractor bid for a specific project
You want to keep your existing first mortgage and its terms in place

Local offices and Pennsylvania rules to know

Property assessment: Lackawanna County Assessment Office. Homeowners return the homestead/farmstead exclusion application, which lowers the assessed value of a qualifying primary residence before property tax is calculated, to the Lackawanna County Assessment Office.

Pennsylvania recording costs: State realty transfer tax on deeds and other writings that transfer real estate (collected by county Recorders of Deeds), often along with an additional local realty transfer tax shared with municipalities and school districts. Your Loan Estimate lists the taxes that apply to your loan.

When a home equity loan makes more sense in Scranton

A home equity loan tends to shine when three things are true: you need a specific amount, you want payments that hold steady, and you want to keep your first mortgage untouched. A roof replacement with a signed contract, a single tuition bill or paying off one large debt are good examples.

It is less ideal when costs are uncertain or spread out, where a HELOC lets you borrow only as you go. It may also be the wrong tool if your first mortgage terms are no better than what a new loan may offer, in which case one consolidated cash-out refinance could be simpler. Comparing all three with real quotes is the surest way to decide.

Before you call

The exact amount you need and a written quote or bill if you have one
Your homeowners insurance declarations page and property tax bill
Whether you might refinance your first mortgage in the future
Pay stubs, W-2s or tax returns for everyone on the loan
Recent statements for checking, savings and retirement accounts

Questions Scranton borrowers ask about home equity loans

Can I pay off a home equity loan early?

Many home equity loans allow early payoff, but some include a prepayment penalty or require you to repay certain closing costs if you close the loan within a set window. These terms appear in your loan documents and disclosures. Ask about them before you sign, especially if you might sell the home or refinance in the next few years.

Why would I choose a home equity loan over a cash-out refinance?

The main reason is to protect your first mortgage. A cash-out refinance replaces your whole loan, so if you have terms you like, you would lose them. A home equity loan leaves the first mortgage untouched and adds a smaller second loan. Closing costs are based on the second loan alone. If your first mortgage terms are no better than a new loan, the comparison may tip the other way.

What does combined loan-to-value mean?

Combined loan-to-value, or CLTV, compares the total of every loan secured by your home with its appraised value. Lenders add your first mortgage balance to the requested home equity loan and check that the total stays under their ceiling. Each lender sets its own limit, and it can differ by occupancy and credit. The more equity you have, the more room you may have to borrow.

Is a home equity loan the same as a second mortgage?

A home equity loan is one type of second mortgage. The term second mortgage describes any loan in second lien position behind your first mortgage, which includes both home equity loans and HELOCs. A home equity loan is the closed-end version: one lump sum, a set repayment schedule and usually a fixed rate. A HELOC is the open-ended, revolving version.

Talk to a licensed loan officer

Get answers about home equity loans for a home in or around Scranton. Subject to credit approval; programs vary.