Have you built up equity in your home?
To get an idea of how much equity you have available, subtract the amount of money you still owe on your mortgage from the property’s value. You may be able to take out a loan or line of credit based on that home equity, depending on your financial health and track record.
Home equity loans or lines of credit deliver more flexibility and lower-interest rates than most unsecured personal loans. They are a great option for renovation projects, debt consolidation, tuition or medical bills, and other unexpected life expenses that come your way.
Is a home equity loan or line of credit right for you?
Home Equity Loan (HELOAN)
A home equity loan is sometimes called a second mortgage, because the structure is much like your original home loan. You borrow a specific amount, receive the lump sum up front, and then make regular payments during a fixed repayment period. Usually, you have a fixed interest rate, so you have the benefit of predictable payments that stay the same amount throughout the life of the loan.
These are ideal when you have a major project, like a home renovation, and you know the full amount you will need up front.
In contrast, a HELOC functions more like a credit card, but typically with much lower interest rates. You establish a line of credit ahead of time and then use it when and if you need it. HELOC’s have a credit limit and a specific period where you can make draws from your loan. During that time, you can continue to withdraw available funds as you begin to make payments on the amount you have used so far. Once the draw period ends, you’ll repay the remaining balance on your loan, with interest, much like a traditional loan.
HELOCs are ideal if you want a cash reserve available for a series of smaller projects, or you want funds available for emergency expenses. You only pay interest on the money you use, but as a result your payment frequency and amounts may vary throughout the life of the HELOC.
Home Equity Line of Credit (HELOC) RatesApply Now
|Loan Type||Closing Costs||APR||Ex: Line Amount||Ex: Interest-only Monthly Payment (10-year draw)||Ex: Monthly Payment (15-year fixed rate)|
|Variable Line of Credit||0.00||9.250%||$100,000||$770.83 for 120 months||$1,029.19|
|Variable Line of Credit with promo rate for first 6 months||Paid by Customer||7.49% first 6 months; 9.250% months 7-120||$100,000||$624.17 for 12 months; $770.83 for 108 months||$1,029.19|
Interest Rates Effective: 09/21/2023
Example rates are based on a primary residence and borrower credit score of 700. Assumes the borrower has a first lien mortgage and the home equity line is a second lien on subject property. Closing costs paid by borrower and may range between $251 and $2,602. Variable rate may increase after closing, as it is determined by WSJ Prime + a margin with a minimum APR of 4.25% and a maximum APR of 18.00%. Max 80% LTV. Loan terms include a 10-year interest-only draw period and converts to a 15-year fixed rate term with P&I payments based on current interest rate in effect at time of conversion. APR (Annual Percentage Rate) is based on loan amount, interest rate, LTV and credit score. Example monthly payments quoted include principal and interest only. Actual payments may be higher if they include taxes and insurance. There is a $100 annual fee to maintain a Home Equity Line of Credit. Rate, terms, and fees are subject to change without notice. Subject to credit approval. Ask us about additional available loan programs.
Home Equity LoansApply Now
|Loan Term||Closing Costs||APR||Ex: Loan Amount||Ex: Monthly Payment|
|15-year Fixed Rate Home Loan||Paid by Customer||8.000%||$100,000||$955.65|
Interest Rates Effective: 09/21/2023