From home loans to refinancing, we've got you covered.
Purchase a home
No matter what your home lending needs are, we can help you find the one right for you. Learn more about these three primary home loan types.
Fixed-Rate Loan
This may be the right choice if you:
- Want a stable monthly payment for the life of the loan.
- Are uncomfortable with interest rates rising significantly over the next few years.
- Are purchasing a home you plan to stay in for a long time.
Adjustable-Rate Loan
This may be the right choice if you:
- Want to lower your initial monthly payments.
- Plan to sell or refinance your home within the initial fixed-rate period.
- Expect your income to increase in the future.
Note: Your interest rate and monthly payments may increase after the initial fixed-rate period ends.
Interest-Only Loan
This may be the right choice if you:
- Have plans to sell the property within a short period.
- Anticipate the ability to make a large payment toward the principal within the next few years of the loan.
- Have irregular income such as investments and commissions. If you have steady income levels, your needs may be better satisfied with principal and interest payment loans.
Note: After the initial interest-only period, your monthly payments will rise.1
Be ready to buy with preapproval.
Become a more competitive buyer by getting a Verified Approval Letter (VAL) from Schwab Bank's home loan provider, Rocket Mortgage®.2 You'll enjoy the benefits—before you even begin to shop for your new home.
Refinance
You can consider a cash-out refinance to help leverage the existing equity in your home to finance home improvement projects.
A cash-out refinance can also help you use the money you've already paid into your mortgage to do things like cover repair bills, consolidate to pay off debt, or even eliminate your outstanding student loans.
You can choose to refinance your home mortgage when looking to lower your monthly payments or pay off your loan sooner.
Based upon proprietary studies at Schwab Center for Financial Research, refinancing may make sense if you can lower your interest rate by at least half a percent.
Learn about potential discounts and current rates.
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Home Equity Line of Credit (HELOC)
A HELOC is a revolving line of credit based on the equity in your home.3
There are no prepayment penalties or balance requirements, plus the closing process wraps up quickly. Additionally, you only need to pay interest on your loan balance for the first 10 years.
Ready to get started?
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Ready to get started?
Experience outstanding client service throughout the entire process with Schwab Bank and Rocket Mortgage.
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Mortgage Rate Calculator
See the rate you qualify for based on the goals and data you provide to help plan your mortgage. Plus, set alerts to stay up to date on mortgage rate changes.
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Frequently asked mortgage purchase questions
Mortgage purchase
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Yes, as long as you meet the criteria for the new loan amount or new program you've selected.
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Following are some of the more commonly requested documents. This list is not all-inclusive.
- When applicable, a fully executed agreement of sale for the property being purchased
- Financial statements for bank and brokerage accounts
- Closing disclosures on the property you're selling, if applicable
- Your most recent pay stubs, if applicable
- Previous W2s
- A copy of a rental lease, if applicable
- Homeowner's insurance policy declarations page
- Flood insurance policy, if applicable
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Typically, the borrower pays for closing costs such as appraisal, inspection, and title company fees. Once the application is submitted, the borrower receives a loan estimate that includes all fees associated with the transaction.
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Rocket Mortgage is the home loan provider for Schwab Bank. We work with Rocket Mortgage to offer mortgage products for our clients. Rocket Mortgage is an industry leader in client service and technology. Rocket Mortgage has a dedicated team of experts specifically serving Schwab clients to ensure an outstanding level of service.
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Yes. You can apply for preapproval and obtain a Verified Approval Letter (VAL) from Rocket Mortgage, which allows you to become a more competitive buyer before you start shopping for your new home.
Mortgage refinancing
Mortgage refinancing
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It depends on your situation, including your current interest rate and how long you intend to stay in your house. Based upon proprietary studies at Schwab Center for Financial Research, refinancing may make sense if you can lower your interest rate by at least half a percent. Reducing your rate in this fashion could increase your monthly cash flow, as you may pay less in interest. If your goal is to shorten the length of your mortgage, your monthly payments could increase. However, you could generally save a considerable amount of interest over the life of the loan.
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Yes. Many people borrow against the equity in their home. This could be a way to increase your cash reserves. However, we strongly recommend that you consult first with your financial planner, accountant, or other financial professional before you decide to move forward with this option.
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Just like when you got your original loan to purchase the home, you'll have closing costs associated with refinancing, such as origination or appraisal, processing, and title company fees. You may have the option of rolling these costs into the loan amount to reduce the amount you pay out of pocket.
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As a Schwab client, you may be eligible for the Investor Advantage Pricing (IAP) program as well as a variety of mortgage products aimed at meeting your specific needs. IAP provides Schwab clients with a mortgage rate discount based on your eligible assets held at Schwab.
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If you qualify, generally, you can use up to 80% of the appraised value of your home to make home improvements. The equity you can use is based on the value of your home and how much you currently owe and is subject to applicable state laws.
HELOC
HELOC
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A HELOC is a revolving line of credit based on the equity in your home.
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A HELOC provides flexibility to leverage the equity in your home to remodel or make upgrades, consolidate debt, make large purchases, or cover tax-season expenses. Additionally, you only need to pay interest on your loan balance for the first 10 years. You may not use a HELOC as a bridge loan, for commercial purposes, to invest in securities, or to repay a margin loan.
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- 1st lien Standalone HELOCs are available.
- 2nd lien Standalone or Piggyback HELOCs are available with an eligible Schwab Bank 1st lien loan.
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A HELOC is a 30-year term. The first 10 years are the draw period where you can draw against the line. During the draw period, you are only required to make interest payments. However, you may pay toward the principal at any time. After the first 10 years, the line will be in the repayment period for the remaining 20 years. You will then pay principal and interest during this time, so your payments will be higher if you have an outstanding balance.
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The estimated fees you may pay on the amount drawn from your line range from $0 - $29 for every $1,000 and will vary based on the location of the property. The amounts provided are estimates and are not a substitute for initial disclosures of closing costs that you will receive once you apply for a loan.
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A Piggyback HELOC is a HELOC that is opened at the same time the home is purchased or refinanced. To complete the underwriting for the Piggyback HELOC, Rocket Mortgage will leverage the same documents that were used for completing the mortgage loan (such as loan application, appraisal evaluation, credit review, etc.). A Standalone HELOC is independent of the first mortgage if any exist. For Standalone HELOCs, Rocket Mortgage will go through the complete underwriting process: loan application, appraisal evaluation, credit review, etc.
