A home equity loan is secured by the equity you’ve established in your home. Tapping the equity in your home can be a smart way to finance a big purchase like remodeling your home, buying a car, paying for college, or your next vacation. It can also help you to reduce your debt by rolling high interest rate credit cards bills into a loan with lower rates.
If you are a homeowner, you can borrow up to 85% of the value of your home. Consult your tax advisor to determine if the interest paid on your Home Equity Loan can be tax deductible.
Home Equity Loan
A Home Equity Loan is used for a specific, immediate expense. You borrow a determined amount of money and have a fixed payment over a set term.
Home Equity Line of Credit
A Home Equity Line of Credit is an ongoing source of credit to be used when and where you need it. You only pay interest on the amount you’ve advanced. The payment amount will vary depending on the outstanding balance and the Home Equity Line of Credit Plan.