Home Mortgage, Home Equity and Personal Loans in Minnesota
Explore flexible financing options with Security Bank & Trust Co., offering personal loans and home mortgages designed to fit your lifestyle, from first-time home purchases to major life expenses.
Buying a home, putting your equity to work, or building something new. Talk with a local lender who knows your name, your town, and the options in front of you.
Why work with a local lender?
We make loans to Minnesota individuals because we care and are invested in their success. That has not changed since our founding in 1935.
Most places pull your credit score and make a decision. We look at who you are, your circumstances, and your character, and we talk about the things that are actually relevant to you. Your mortgage or home equity line is too important to ship out of state. You get a local process, a local servicing contact, and a lender who works in the market you live in.
On construction and remodeling, we have experience with many local builders and work alongside homeowners through the whole financing process.
Which home loan option fits your situation?
Most of what our neighbors come in for falls into one of these. Your lender will help you land on the right one, and there is no cost to talk it through.
Home Mortgage Loans
A first mortgage is the original loan you take out to buy your home. We work hard to make sure you find the option that fits your finances, and your loan is underwritten by people who know the Minnesota markets we serve.
- Secured by your principal residence
- Principal and interest or interest only payments
- Terms vary by type and purpose of the transaction
Home Equity Loans and Lines of Credit
A home equity loan is generally a second mortgage that puts your equity to work for home improvements, a down payment, or other purposes. A Home Equity Line of Credit does the same thing, but you draw and repay as you go. The comparison below walks through which one fits.
- Amount based on available equity in your home
- Fixed payments on a loan, interest only on a line
- Common uses include remodeling and consolidating other debt
Bridge and Construction Loans
Building your dream home or remodeling the one you have. We offer short term, interest only financing to get you through the process. Your lender reviews your construction budget, personal financials, schematics, and end financing options, then we work together to disburse funds as the project moves forward.
- Construction disbursements as the project moves forward
- Interest only payments monthly during construction
- Permanent financing options available
Cabins, Second Homes and Land
A place at the lake, a second home, or the lot you plan to build on someday. Valuing these properties well depends on knowing the local market, and that is the market we work in. The same lender can stay with you from a land purchase through construction when you are ready to build.
- Financing for secondary residences and cabins
- Vacant land purchase, including lots for a future build
- Appraisal and market knowledge in the communities we serve
Home Equity Loan or Home Equity Line of Credit?
Both put the equity in your home to work. The difference is how you draw the money, and which one fits depends on whether you have one project with a budget or an ongoing need.
| Home Equity Loan | Home Equity Line of Credit | |
|---|---|---|
| Best when | You want a specific amount of money one time, for a project with a set budget. | You want the money there when you need it, and you expect to draw more than once. |
| How it works | Closed ended. You borrow once and pay it back in full. The money is not available to borrow again. | Revolving, or open. You can use it and pay it back as often as needed up to an agreed dollar amount. |
| Payments | Fixed monthly principal and interest payments. | Interest only payments monthly. |
| Terms | Fixed loan amount. | 12-month fixed rate or 60-month variable rate terms. |
| Amount | Based on available equity in the home. | Based on available equity in the home. |
| Neighbors use it for | A remodel with a set budget, where the same payment every month matters. | Personal expenses, remodeling, a vacation, or an investment property. |
If you are not sure which one fits, that is a normal question and a short conversation. Your lender will look at what you are trying to do and walk you through both.
How much equity do I already have?
When people plan a major purchase, they usually look at a checking balance or a credit card limit. It is worth looking at what you already own first. Equity is the current market value of a property less any loans against it, and for a lot of Minnesota homeowners it is the largest and least used borrowing capacity they have.
An example. Say you bought your home 10 years ago for $250,000 and put $50,000 down at closing. You have paid the mortgage balance down from $200,000 to $160,000. If home values in your area have held steady:
- Current value$250,000
- Mortgage balance$160,000
- Equity available$90,000
If values have gone up, your equity goes up with them. In a loan scenario an appraiser determines that value. The appraiser is a disinterested third party, must be engaged by the bank, and generally works from recent sales of similar nearby properties.
Equity in a home can secure either a loan or a line of credit. If you are buying a vehicle, boat, or piece of equipment and have not built equity yet, we use the item being purchased plus a cash down payment to secure the loan instead.
What other personal loan options do you offer?
Not every loan involves a home. These cover the rest, and your lender can walk you through either one.
Personal Loans
Our personal installment loans cover the things that come up outside a home purchase, including a vehicle, a boat, or a project you would rather not put on a card. Depending on the complexity of the request, turnaround can be fairly short.
- Secured and unsecured loans available
- Terms vary by what you are financing and how old it is
- Set principal and interest payments monthly
- Personal lines of credit also available
Overdraft Protection
Overdraft Protection and Ready Reserve loans are there when your checking account comes up a little short. These reserve accounts tie to your checking account, and if you overdraft, funds transfer in to cover it.
- Unsecured revolving credit, available to use again as needed
- Higher interest rate given the unsecured nature
- Minimum monthly payments auto-debit from your checking account
Not sure whether you need a mortgage, a home equity line, or something else entirely? That is exactly the conversation our lenders like having.
Start the ConversationHow does the loan process start?
The first step is a conversation. Your lender walks through your goals with you and helps you choose the option that actually fits, rather than the one that fits everyone. Here is what to expect.
Meet your lender
Sit down with someone local who will work through your goals and your options with you.
Gather your documents
Financial statements, account verifications, and tax returns from the past two years.
Choose your option
Your lender walks you through the options above and what each one means for your monthly payment.
How do I calculate my debt-to-income ratio?
Your debt-to-income ratio compares what you owe each month to what you earn. Think of it as the percentage of your gross monthly pretax income that goes toward rent, mortgage, credit cards, or other debt. It is one of the clearest signals of how a loan will actually sit in your budget, and it is worth running before you apply.
Step one: add up your monthly obligations
- Monthly rent or house payment
- Monthly alimony or child support payments
- Student, auto, and other monthly loan payments
- Credit card monthly payments (use the minimum payment)
- Other debts
Step two: divide by your gross monthly pretax income
Groceries, utilities, gas, and taxes generally are not included.
Where you want to land: target a ratio under 35%, and manage your obligations to no more than 43% of your gross monthly pretax income. The lower the ratio, the stronger your application, because it shows you have room to handle the payments you make each month.
Common questions about mortgages and home equity in Minnesota
What is the difference between a home equity loan and a home equity line of credit?
A Home Equity Loan is closed ended. You borrow a fixed amount one time, with fixed monthly principal and interest payments, and the money is not available to borrow again. A Home Equity Line of Credit is revolving, so you can use it and pay it back as often as needed up to an agreed dollar amount, with interest only payments monthly. Both are based on available equity in your home.
What can I use a home equity line of credit for?
Neighbors use them for everything from personal expenses to remodeling, a vacation, or an investment property. Because the line is revolving, it works well when you expect to draw more than once rather than fund a single project.
How do I know how much equity I have in my home?
Take the current market value of your home and subtract any loans against it. In a loan scenario, the value is set by an appraiser engaged by the bank, generally based on recent sales of similar properties in your area.
What debt-to-income ratio do I need to qualify?
Target a ratio under 35%, and manage your obligations to no more than 43% of your gross monthly pretax income. Banks use the ratio to measure your ability to manage monthly payments, so a lower ratio strengthens your application.
Which monthly expenses count toward my debt-to-income ratio?
Count your rent or house payment, alimony or child support, student, auto, and other loan payments, and the minimum monthly payment on your credit cards, along with any other debts. Groceries, utilities, gas, and taxes generally are not included.
What documents do I need to apply?
Essential documents include financial statements, account verifications, and tax returns from the past two years. Your lender will tell you if anything else applies to your situation.
Can I get financing while my home is being built?
Yes. Construction and bridge loans offer short term, interest only financing during the build, with disbursements as the project moves forward. We prefer that you have permanent financing secured, and your lender can walk you through those options.
Do you finance cabins and second homes in Minnesota?
Yes. We finance secondary residences and cabins alongside primary homes. These properties depend on local market knowledge to value well, and your loan is handled by a lender who works in the area rather than a processing center somewhere else.
Can I get a loan to buy vacant land?
Yes. We offer financing for vacant land purchases, including a lot you plan to build on later. When you are ready to build, the same lender can walk you through construction financing, so one relationship carries through both steps.
Do you lend in my community?
We serve 21 locations across Minnesota, and your loan is decided by a lender who works in the market you live in rather than a processing center somewhere else. Find your nearest branch to see who is closest to you.
Can I borrow for a vehicle or equipment if I do not have home equity?
Yes. You do not need home equity to borrow. When you are buying a vehicle, boat, or piece of equipment, we use the item being purchased plus a cash down payment to secure the loan. Terms depend on what you are financing and how old it is, and your lender will walk you through the options.
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Let's talk it through
We hope this overview helped. If you have questions, reach out. We are personal and friendly, and our goal is to get you the best answer for you. That is another way we are
Growing, together.
Loan products are subject to credit approval. Terms, conditions, and eligibility requirements apply. Talk with your lender about the option that fits your situation. Page last reviewed July 2026.