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Home equity loans and home equity lines of credit are two ways you can use the equity in your house to borrow funds for a variety of reasons.
With a home equity loan, you borrow a specific amount for whatever your needs — such as a home remodel, debt consolidation, or a new vehicle.
Home equity loans may qualify for tax-deductible interest (check with your tax advisor). They also lend themselves to easy budgeting since the monthly payments of principal and interest are fixed.
You have worked hard to build equity in your home. Put it to work for you with a HELOC! Borrow what you need, when you need it, for projects around your home, paying off higher interest debt, or making large purchases.
It is time to say yes to that updated kitchen, finished basement, new car, or debt consolidation!
A home equity line of credit, often called HELOC, is a revolving line of credit with interest-only payments. It uses a portion of the equity in your home to borrow money at low interest rates for any purpose. It allows you to access money when needed without needing to reapply for a new loan.
Homeowners with equity in their home, especially those with a low fixed rate on their first mortgage, can benefit from a HELOC. A HELOC can provide funds as you need them, both now and in the future. You can borrow, repay, and re-borrow up to your credit limit as often as you wish.
You can borrow up to 80–90% of your home’s value minus the remaining balance of your mortgage for a HELOC. Talk to one of our lenders to see how much you qualify to borrow.
You can use your line of credit for anything. Common uses of a HELOC include home improvements, consolidation loans, vacations, vehicle or boat purchases, weddings, medical expenses, education, or starting a business. Access HELOC funds easily with our Online Banking and Mobile App or by writing a check.
The interest rate will vary with the Prime Rate as published in the Wall Street Journal, plus a margin of up to 1%.1
Home equity loans provide you with one lump sum, which is typically repaid with equal monthly payments over the term of the loan.
A HELOC is more flexible, because it is a form of revolving credit, similar to a credit card. You are given a credit limit and can use as much or as little of that credit limit as you want. You only pay interest on the balance you have borrowed. A HELOC allows you to borrow, repay, and re-borrow up to your credit limit as often as you wish.
Your monthly payments will be only the interest accrued on the amount you have used of your credit line.
You can make principal payments on the balance of your credit line at any time over the term of the HELOC. A balloon payment of any remaining balance will be due at the end of the HELOC term (15 years from the opened date).1
We do not charge any underwriting fees, but there may be other fees involved in opening a HELOC.1 Closing costs could include fees for title, recording, appraisal or evaluation, or more. In most cases, costs range from $163 to $414 unless an appraisal is required. An appraisal typically costs $400 if it is required. Talk to our lenders to learn what closing costs may apply for your situation.
An annual fee of $50 does apply to HELOC accounts. There are no transaction fees.
Talk to one of our mortgage lenders to get started! Call our office at 608.643.3393 or schedule an appointment.
