Home Equity Loans
Your home is probably your biggest investment, and it can give you some financial flexibility. When your home increases in value or your mortgage decreases (or both), you have an opportunity. Do you use the equity you’ve earned to consolidate debt, do home renovations, cover a large expense, or take care of another priority?
Choose the best one for you
Whatever you plan to do with the money, you can choose a fixed-rate loan or a variable-rate line of credit. It may make more sense for you to get a lump sum upfront with a fixed rate and term. This can make it easier to budget payments, and can be a good option if you know exactly how much you need and are ready to use the funds.
Or you may want a line of credit you can tap into as needed, with a variable rate and an open-ended term. This is a good option if you have an ongoing project or don’t know all of the costs up front. (Variable rates can change quarterly, based on the Prime Rate.)
Home Equity (Fixed)
Benefits:
- Interest rate is fixed
- Termed out 5, 10, and 15 years*
- Monthly payment is fixed
- Funds are distributed out at closing
- Choose if:
- You are ready to use the funds
- You know exactly how much you need
- You want a payment that won’t change
Home Equity Line of Credit (HELOC)
Benefits:
- Open ended, revolving line of credit
- Variable rate
- Payment is only on amount used not full limit (unless max amount is used)**
- Funds are distributed as needed
- Choose if:
- You know that you have some home improvements but not sure when they will be started
- You’re doing home repairs in phases
- You want a line of credit readily available in case of emergency
Take the next step
Want to learn more?
Check out our home equity FAQ post and take a look at the current rates.
Ready to get started?
Apply today. For a loan or line of credit, your home needs to have a market value higher than what you still owe on the house.
Have questions? We're here to answer them.
*For example: a $50,000 home equity loan at 7.006% APR with term of 120 months. 120 monthly payments of approximately $582.96.
**For example: a fully maxed out $25,000 home equity line of credit at 7.5% APR, monthly payments will be $375.
