Home Equity Line of Credit
Funds Available When You Need Them
Have an ongoing expense or regular payments you need to make? Your home’s equity may let you Live Smarter by borrowing against its value for paying other bills.
What is Home Equity?
If you own a home and have paid off a large enough portion of the principal, you’ve built up equity. Equity is simply the difference between what your home is worth and the amount you still owe on it. For example, if your home is worth $200,000 and you still owe $150,000, you have about $50,000 in equity.
What is a Home Equity Line of Credit?
A Home Equity Line of Credit (HELOC) allows you to open a line of credit to borrow against, based on how much equity you have in your home.
What’s the Difference Between a Home Equity Line of Credit (HELOC) and a Home Equity Loan?
While a HELOC is a revolving line of credit with a variable interest rate from which you can draw, a home equity loan is a fixed loan with a set payment schedule that provides you a larger sum up front for making a one-time purchase. Think a Home Equity Loan might be a better fit?
Home Equity Loan: Learn More
What are the benefits of a Home Equity Line of Credit, and which home equity option is better for your needs?
The choice really depends on what you need it for. After reading about both home equity options, if you’re not sure what will work better for you, we can help you understand them better. We'll talk about the application process, see if you qualify, and discuss which could work for you and your needs.
Think of a HELOC loan as more like a credit card. Once it’s approved for a given amount, you can decide when you want to use the money, and you can withdraw it from that account. Once you’ve taken some out, you’ll have payments due. A HELOC is more practical for purchases that are made a smaller amount at a time, like one-at-a-time home projects. A HELOC uses your home as collateral, and the rates are generally lower than credit cards. Plus it could have tax benefits, depending on how it’s used.
Full disclosures listed below.
1st or 2nd Lien
Loan to Value is Determined by Credit Score
No Closing Costs
Mortgage Tax Paid by First Source
Funds As Needed Up to 15 Years
Variable Draw Period Up to 15-Years with 15-Years Additional to Repay
Interest Only During Draw Period, Principal Plus Interest During Repayment Period
Auto Payment Available
If Paid Before 3 Years, Member Repays Closing Costs
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