Lock In a 6.25% Fixed Rate with Low Closing Costs*
Available on home equity loans and fixed-rate HELOCs through July 31, 2026. Get $400 off closing costs* (covering 95% of situations) and get a decision from a local team that knows Eastern Iowa.
Additional Bonus
Open a Checking Account & Get $200
Set up a new FSB checking account with auto-pay on your home equity loan or HELOC and earn a $200 bonus.** You get a simple way to manage payments and a checking account backed by a local team that knows your name.
Get Started & Earn $200$200
New Customer Bonus**
The Lowest Rate Is Not Always the Cheapest Loan
Based on a $25,000 loan over 60 months, here is what you actually pay when you factor in closing costs and the FSB new account bonus.
Lowest Total Cost
Farmers State Bank
Fixed-Rate Home Equity
6.25%
Fixed-Rate*
60 Payments$29,760
Closing Costs-$400
New Checking Bonus**-$200
Total Cost$28,994
Local Credit Union
Fixed-Rate Home Equity
5.74%
Fixed-Rate
60 Payments$28,800
Closing Costs$400
New Account BonusNone
Total Cost$29,200
Local Bank
Intro-Rate Home Equity
5.49%
Intro Rate, then 7.00%
60 Payments$29,484
Closing CostsUp to $653
New Account BonusNone
Total CostUp to $30,137
FSB's rate is not the lowest advertised, but after accounting for closing costs and the $200 new-account bonus, it is the least expensive loan of the three. You save up to $1,177 compared to the local bank's intro rate offer.
Apply for a Home Equity LoanWhich Home Equity Option Is Right for You?
Start here to compare loan types, features, and payment details.
Home Equity Loan in Iowa: Fixed Rate, Lump Sum
A home equity loan gives you a one-time lump sum at a fixed interest rate. Your monthly payment stays the same from the first month to the last, so you always know what to expect. It's a strong option for large, one-time expenses like home improvements or debt consolidation.
Home Equity Loan Features
- Fixed interest rate for predictable monthly payments over the life of your loan
- Lump-sum funding gives you immediate access to your full loan amount at closing
- Flexible repayment terms with amortization up to 15 years on loans of $25,000 or more
- Potential tax benefits on interest paid (consult your tax advisor)
Home Equity Line of Credit (HELOC) in Iowa
A home equity line of credit gives you ongoing access to funds as you need them. Draw what you need, pay it back, and draw again during the draw period. It works well for ongoing projects, recurring expenses, or as a financial safety net. FSB offers both variable and fixed-rate HELOC options.
HELOC Features
- Revolving credit line you can draw from as needed during the draw period
- Fixed-rate option available for payment predictability on a 60-month term
- Borrow, repay, and borrow again without reapplying each time
- Pay interest only on the amount you use, not your full approved limit
What Can a Home Equity Loan Be Used For?
Home upgrades don't have to wait. Your home's equity can help you fund what matters most.
Home Renovations
Tackle a kitchen refresh, new flooring, a deck, or a larger repair. Renovations can increase your home's value while improving your daily life.
Debt Consolidation
Combine high-interest credit cards or personal loans into one fixed monthly payment at a lower rate.
Education Expenses
Cover tuition, certifications, or training costs with a predictable payment you can plan around.
Major Purchases
Finance a vehicle, medical expenses, or other large costs without draining your savings.
How to Apply for a Home Equity Loan in Iowa
FSB keeps the process Faster. Stronger. Better.® from application to funding. Our local lenders review every application in-house, so you get a decision from someone who knows Eastern Iowa.
1
Get started online in minutes or visit an FSB branch in Marion, Cedar Rapids, Hiawatha, or Tiffin.*
2
A local lender reviews your application and walks you through your options. No call centers, no runaround.
3
Once approved, access your funds the way that works best for you.
Home Equity Loan vs. HELOC: Which One Fits Your Needs?
Side-by-side comparison of features, access, and costs for Iowa homeowners.
| Features | Home Equity Loan | HELOC |
|---|---|---|
| Uses your home as collateral | ✔ | ✔ |
| Fixed interest rate available | ✔ | ✔ |
| Borrow up to 85% of home value | ✔ | ✔ |
| Funds delivered as a lump sum | ✔ | ✖ |
| Revolving access to funds | ✖ | ✔ |
| Reusable credit line | ✖ | ✔ |
| Fees & Costs | ||
| $400 off closing costs* | ✔ | ✔ |
| No early payoff penalty | ✔ | ✔ |
Mallory was incredibly helpful and professional throughout the loan process, providing excellent knowledge and guidance.- Wael A., FSB home equity borrower in Iowa
Home Equity Loan FAQs
Get answers to common questions about home equity loans, HELOCs, and how they work in Iowa.
What is the current home equity rate at FSB?
Through July 31, 2026, FSB is offering a 6.25% fixed rate on home equity loans (up to 66 months) and fixed-rate HELOCs (60-month term). The bank covers eligible closing costs up to $400. A minimum loan amount of $15,000, a credit score of 690 or higher, and a maximum loan-to-value of 85% apply.*
How much can I borrow with a home equity loan?
You can typically borrow up to 85% of your home's appraised value, minus any existing mortgage balance. The exact amount depends on your credit score, income, debt-to-income ratio, and the property type. A strong financial profile can help you qualify for a higher amount and better terms.
What is the difference between a home equity loan and a HELOC?
A home equity loan gives you a one-time lump sum at a fixed interest rate with a set repayment schedule. A HELOC works more like a revolving credit line where you borrow against an approved limit as needed. A home equity loan is best when you know the exact amount you need. A HELOC is best when you want ongoing flexibility.
What is a home equity loan?
A home equity loan lets you borrow against the value you've built in your home. You receive a lump sum with a fixed interest rate and fixed monthly payment. It's a straightforward way to fund a major expense with payments you can plan around. Learn more about FSB's lending options.
What is a HELOC?
A Home Equity Line of Credit (HELOC) gives you flexible access to your home's equity. Instead of one lump sum, you draw funds as needed up to your approved limit during the draw period. You pay interest only on the amount you use. When the draw period ends, you repay the balance over a set term.
What do lenders look at when I apply for a home equity loan?
Lenders review your credit history, income, existing debts, and how much equity you have in your home. They want to see that you can comfortably manage the new payment alongside your current obligations. A solid credit history, steady income, and lower debt-to-income ratio improve your chances of approval and favorable terms.
Can I use a home equity loan for debt consolidation?
Yes. Many borrowers use a home equity loan to consolidate high-interest credit card balances or other debts into a single, fixed monthly payment. Because home equity rates are typically lower than credit card rates, this can reduce what you pay in interest over time. Learn more about debt consolidation with FSB.
Does FSB charge closing costs on home equity loans?
Through July 31, 2026, FSB is offering a $400 credit towards closing costs on qualifying home equity loans and HELOCs. If an appraisal or other fees exceed $400, the borrower is responsible for the difference.* Most situations will not exceed $400.
Where can I apply for a home equity loan in Iowa?
You can apply online or visit any FSB branch in Marion, Hiawatha, Cedar Rapids, or Tiffin. Every application is reviewed locally by an FSB lender.
Where We Lend
Home Equity Loans Across Eastern Iowa
The same competitive rates and local decisions, no matter where you own your home.
Linn County
Cedar Rapids
Branches on the southwest, northwest, and northeast sides of Cedar Rapids give you convenient access to a local lender.
Linn County
Marion
FSB's main Marion branch and Collins Road Square serve Marion homeowners with full-service home equity lending.
Linn County
Hiawatha
A dedicated Hiawatha branch with the same local lending expertise and in-house home equity decisions.
Johnson County
Tiffin & Iowa City Area
FSB's Tiffin branch opened in 2021 to serve one of Iowa's fastest-growing communities with full home equity lending services.
Don't See Your City?
Across Eastern Iowa
Not sure if we lend in your area? Contact a local lender, and we'll find the right path forward.
Your rate is based on your credit profile and loan type, not your location. Same competitive rates across all Eastern Iowa communities we serve.
Estimate Your New Payment
Use our debt consolidation calculator to see what combining your debts into a single home equity loan could mean for your monthly payment.
Calculate Your Payment
Fast Approvals, Competitive Rates
Drive away in your dream car with fast approvals and rates designed to keep your payments low and manageable.
Home Equity Disclosures
†All rates are subject to change without notice. FSB is not responsible for typographical errors or omissions.
*To qualify for a Home Equity Line of Credit (HELOC) at 6.25% APR or a fixed rate Home Equity Loan with a 6.801% APR, with up to $400 off closing costs; you must have a credit score of 690 or greater, a maximum loan to value ratio of 85%, payments to be auto debited from an FSB checking account and a minimum loan amount of $15,000. Loan proceeds cannot be used to refinance an existing FSB loan, unless existing loan is increased a minimum of $15,000 and written into a fully amortized home equity loan. The unpaid principal balance and accrued interest will be due as a balloon payment at maturity in 60 months for HELOC’s, with $100 minimum monthly payment required. All other home equity loans mature at 66 months, with a possible balloon payment. Payment does not include taxes and insurance. Proof of property insurance is required at the time of closing. An annual maintenance fee of $15 will apply to HELOC’s. Must be 18 years or older to apply. Loan subject to credit approval. Other rates, terms and payment options are available. Promotion expires on 7/31/2026. NMLS# 403565.
**To qualify for the $200 bonus, you must not currently have an FSB checking account and open a new checking account by the end of promotion. Direct deposit and Estatement enrollment required. Confirmation of a min. of 3 payroll deposit with $500 min. amount required prior to receiving the bonus payment. The bonus will be deposited into your checking account within 30 calendar days of the third payroll direct deposit posting to the account. Limit one $200 bonus per household. Opening any FSB checking account qualifies. A $25 - $1,000 min. deposit is required to open. Rewards Checking is interest-bearing. Earn up to 3.50% APY (Annual Percentage Yield), APY effective as of 4/2/2026. The interest rate and annual percentage yield (APY) will depend upon the daily balance in the account as shown in the rate chart and making 15 debit card purchases of $20 or more. All new checking accounts are subject to account approval and 1099 reporting. May not be combined with other offers. See product information for additional requirements specific to each account type. Must be 18 or older. Promotion ends 7/31/2026.
