A home equity loan is a fixed-rate loan based on the available equity in your home and other qualifying criteria. You generally receive the loan amount in one lump sum. Home equity loans are geared towards those who have current borrowing needs and need to know what their monthly payments will be. You can take up to 30 years to repay a home equity loan. Interest is usually tax deductible. The loan amount can be up to 100% of the available equity in your home.
With a Home Equity Loan, you can use your home as collateral to consolidate bills, pursue home improvements, purchase a new automobile, consolidate high-interest debt, put your kids through college, or plan a vacation. The minimum amount available for a loan is $10,000, but you may borrow as much as $250,000.
Apply for a Home Equity Loan or Home Equity Line of Credit!
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Upside: Home Equity Loans provide large amounts of cash at relatively low interest rates. This loan type also provides certain tax advantages that are unavailable with other mortgage loans.
Downside: You are using your home as collateral. Due to this fact, it may put your home at risk if you are unable to meet your mortgage payment on time. If you sell your home, you will be required by most financial agreements to pay off your credit line at that time.
What's a Home Equity Line of Credit?
A home equity line of credit is a variable-rate, revolving line of credit based on the available equity in your home and other qualifying criteria. Once approved, you can use your credit line for immediate needs or simply save it for future needs.
You can access your line of credit by check or credit card. You pay interest only on the amount you use. Interest is usually tax deductible. As always consult your tax advisor about the deductibility of interest in your case. The line amount is up to 100% of the available equity in your home. Home equity financing is typically used for fixing up the house, children's college educations, buying a car or consolidating debts. Having trouble deciding which loan would work best for you? Fill out our easy application form.
