We're Here to Help (315) 735-8571

Loans Header

Home Equity Loan

A Smart Way to Borrow

A Great Home Equity Loan

Have a large expense or project? The best way to pay for it may be right under your feet: in your home’s equity. For bigger home improvement projects, debt consolidation, or paying a large bill like a college loan, a home equity loan could be the perfect answer. 

What is Home Equity?

If you own a home and have paid off a large enough portion of the principal (the part that is paying for the cost of your home, not the interest on your loan), 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. You may be able to take out a home equity loan and borrow against that equity, in some cases for more than your home’s current appraisal. We also provide you with friendly, personal, local service. 

What’s the Difference Between a Home Equity Loan and a Home Equity Line Of Credit (HELOC)?

In both cases, you’re borrowing money against the equity in your home, using the home itself as collateral. While a home equity loan is a fixed loan with a set payment schedule, a HELOC is a revolving line of credit from which you can draw, with a variable interest rate and changing schedule for repayment.

You may have heard a home equity loan referred to as a “second mortgage”, and as an option can be combined with your original mortgage for simpler monthly payments with a fixed interest rate. With a home equity loan, you get the entire amount of the loan when you take it out, so it’s often better for larger, one-time purchases like a car, or to pay off a big expense, like a college loan.

A HELOC is more like a credit card. Once it’s approved, you can decide if and when you want to use any of the money, and you can withdraw it from that account. Once you’ve taken some out, you’ll have a payment due. A HELOC is more practical for purchases that are made a smaller amount at a time, like once-a-semester tuition bills.

Which is Best for Your Needs?

Like many decisions, the answer is, “it depends”. A larger, one-time-payment project would be better served by a home equity loan, while a long-term project that can be paid a small amount at a time could call for a HELOC. We’ll help you decide which is best for you and your needs, by including factors such as when you plan to sell your home, what type of need you have, any potential value added to your home, and the potential return on your investment. 

Home Equity Loan Rates

We help you choose the right home equity loan or line of credit, with competitive loan rates. Your rate can depend on several factors, including your credit score, the amount of equity available, whether you decide to include certain options with your loan, whether your property is a first lien property, and others. We provide you with a credit review, look at your property and current equity available, present your options and trade-offs, and if you qualify, provide you with a low rate loan or line of credit. We offer:

  • Fixed and variable rate home equities
  • 24/7 account access
  • Escrow options on 1st lien properties
  • Eligibility for a potential income tax deduction (consult your tax advisor) 
  • Rates generally lower than other loan types or credit cards

Home Equity Calculator

Start with our home equity calculator below, to get an idea of how much could be available to you. Enter your principal amount, the rate, and the number of payments for a breakdown of the monthly payment amount and total interest. You can also explore the many home equity options available to you through First Source, our current terms and rates, and disclosures. This is meant to be simply an overview; one of our Member Service Representatives can explain all the details to you, and answer any questions you have. 

See how you can use your home’s equity to your advantage by submitting the form below, or call 315-735-8571 to make an appointment today.

Fill out my online form.

Which home equity option is right for you?

Check out our helpful loan comparison calculator.


Home Equity Comparison Calculator

*Federally insured by NCUA. Membership and credit requirements apply. Supporting dreamers everywhere. By submitting your email, you give First Source permission to send you informative and promotional emails, including information on upcoming events, products, and services. You may change your designation at any time in the future.