Home equity loans are perfect for home improvements, remodeling or room additions. You can even pay off your debts or just get cash. Some lenders can even qualify you for up to 125% of your equity. Now is the best time to get the best possible rates.
New to Home Equity?
Need advice? Want to apply online or simply speak to an expert over the phone? Whatever you need money for, we can help with a home equity line of credit!
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There are a variety of home equity lines of credit and loans with flexible features. Using the equity in your home can be an intelligent way to meet both your short-term financing needs and long-range goals.
“Home Equity” is defined as the part of a home’s value that the mortgage borrower owns outright; the difference between the fair market value of the home and the principal balances of all mortgage loans.
“Home Equity Loan” is defined as a loan based on the amount of equity a homeowner has in the property. The interest paid on a home equity loan is usually deductible. Unlike a home equity line of credit, the home equity loan features a fixed rate, payment and term, usually five to 15 years.
Learn about lines of credit, loans and the top uses of home equity. Once you know the basics, compare the full range of accounts they offer to help you meet your specific needs at the lowest rates.
You can convert your line of credit balance from a variable to a fixed interest rate with fixed monthly payments, take advantage of other flexible payment choices and conveniently manage your finances based on your individual needs — all with a single application. Quick comparison:
| Home Equity Loan | Home Equity Line of Credit | |
| Ideal for: | A one time purchase when you know exactly how much money you need upfront, and you don’t anticipate needing additional financing in the near future. | Ongoing expenses, when you’re not sure exactly how much you need and when you’ll need it. |
| Payment Options: | Fixed monthly payments of interest and principal.Pay additional principal at any time during the term of the loan. | Interest only on the line of credit (during the draw period) — generally lower than loan payments.Repay principal at any time during the term of the line of credit.Convert any remaining balance to a fixed-rate advance with fixed monthly payments. |
| Access to Funds: | Receive the entire amount of the loan upfront. | Borrow only the funds you need at the time you need them without having to reapply during the term of the line of credit. |
Home Equity accounts come with the benefits of potential tax advantages (consult your tax advisor), secure online application status, secure online account management, and optional payment protection insurance.
A home equity loan specialist can always help answer your questions.
What you can do with the money from your home’s equity?
The best options are up to you. The majority of home owners will use a home equity loan for debt consolidation, like creating one payment to take care of all that credit card debt. Some people have racked up so much credit card debt they often turned to home equity to ease the burden. Doing this can significantly reduce your monthly interest charges, allowing you to save or invest that much more money.
The loans are also used for a wide variety of other purposes, such as home improvements. Making upgrades and repairs to a house has aesthetic benefits by making your home safer or more comfortable to live in. It can also increase the fair market value of your house. That’s why many homeowners make home-equity financed improvements with an eye toward selling their property.
Loans are also used for medical expenses, education, emergencies and big-ticket purchases. An equity loan can be a godsend if you are hit with thousands of dollars in medical bills or you lose your job. Tax advantages and lower interest rates also make equity loans a smart way to finance a new car, motorcycle or some other high-price purchase.
Want to apply online or simply speak to an expert over the phone? Click here!