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Home Equity Loans
A Home Equity Line of Credit (HELOC)
A Home Equity Line of Credit is like a credit card. You
can borrow money up to your credit limit, and you only get charged
interest on the portion that you borrow. You can pay down the balance,
then reuse the credit. Most have a draw term, usually 5 to 10 years,
where you can draw money out, then the loan is paid back over a 10 to 15
year period. You may also elect to refinance the Equity Line and get
another 5 to 10 years to use the line of credit.
You choose what you want to do with your home equity
line of credit:
There are many features of HELOC loan programs. Ask your
Loan Officer to help you decide which is best for you.
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Great Rates: rates can be below the prime rate on some
programs.
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No Loan Fees: No appraisal fee or closing costs.
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Convenient Closings: Some programs allow doc signing
in your home.
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Credit lines or maximum loan limits vary with each
program.
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Pricing varies with the LTV.
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Accessing the cash in your credit line can be done by
writing a check, charging on a credit card or making a withdrawal at a
financial center.
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Many of these programs have an early termination fee.
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Some programs may offer a fixed rate loan option
feature, where you can lock in a fixed rate on all or a portion of
your outstanding balance.
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Pricing is based on your Credit Score. These cutoff
limits are fairly strict, so if your score is just below the next
higher range, you may want to discuss how to improve your score with
your loan officer.
A HELOC is usually 100% tax-deductible*, and a smart way
to consolidate debt, pay for home improvements, new automobiles, student
loans or even vacations or weddings.
Home Equity Fixed Rate Loan
You may prefer a home equity fixed rate loan compared to
a HELOC. Home equity fixed rate loans offer a wide variety of
amortization periods (length of time to pay it back), more choices for
people with less-than-perfect credit, fixed rates so your rate can never
go up and the interest paid may also be tax-deductible*!
* It is recommended that Customers consult their tax
advisor. Not all loan fees or interest payments are tax deductible. |
