Home Equity Loans and Home Equity Lines of Credit
Our affiliates offer opportunities for customers to borrow against the equity in their home in order to assist with expenses such as home purchase, college tuition, debt payment, and other major purchases. We offer both Home Equity Loans and Home Equity Lines of Credit, so that you can be sure to obtain the right type of financing to fit your individual needs.
Home Equity Loans:
A Home Equity Loan (HEL) is a fixed rate loan secured by the equity in your home. It is distributed up-front in one lump sum. Both your payment and your interest remain fixed for the entire term of the loan. It can be used to cover a planned expense or to consolidate outstanding debts that carry higher interest rates. The interest paid on a Home Equity Loan is up to 100% tax deductible.*
Home Equity Lines of Credit:
A Home Equity Line of Credit (HELOC) is a line of credit made available to you (similar to a credit card) and secured by the equity in your home. Instead of being paid in a lump sum, you are given a credit limit and may borrow from that amount on an as-needed basis. Your monthly payments and interest charges will be calculated based on the amount of credit that is currently outstanding.
This type of revolving credit is extremely practical for those who may wish to borrow on a continuous basis. Because the line is secured by the equity in your home, it is considered to be less risky than credit card lines which are not secured with any type of collateral. For this reason, HELOCs generally carry a lower interest rate than traditional (non-HELOC) lines of credit. The interest paid on a Home Equity Line of Credit is up to 100% tax deductible.