What is a home equity loan?
A Home Equity Loan allows homeowners to borrow against the equity in their property. Equity is the value of a homeowners interest in real estate. Homeowners often apply for this type of loan to make home improvements or to pay college tuition or pay off debt. Home Equity Loans (also known as second mortgages) typically have a fixed-rate.
A home equity loan is a form of credit, which allows you to borrow the existing equity relative to the current market value of your home and all other debts/liens taken against your home. You can estimate your homes equity by adding together the balance of all the debts secured by your home, then subtracting the total from your home’s estimated value. The amount of equity you will be allowed to borrow will vary by lender, product and affordability.
A home equity loan is a second mortgage that provides you with a credit line, turning you home equity into cash and allowing you to spend it on home improvements, debt consolidation, college education or other expenses. Home equity loans and lines of credit are usually repaid in a shorter period than first mortgages, such as 15 years instead of 30 years.
A home equity loan is a loan that uses your house as collateral. The amount of the loan depends on the amount of equity in your home. Your equity is calculated by taking the value of your house and subtracting your mortgage loan balance. Typical uses for equity loans are to buy cars, debt consolidation, travel, education, etc. We offer 2 types of home equity loans. 1) A line of credit. It works like a credit card, except the rate is much lower, the interest may be tax deductible, and you write checks instead of using a plastic card to make purchases. You receive a monthly statement detailing your activity of checks and payments. The minimum payment is only 1.75% of you current balance ($10,000 balance has a $175 payment due). The line’s rate is variable, and is tied to Prime Rate, which is subject to change daily. 2) An installment loan. We lend you a lump sum and you pay us back in equal monthly payments until the loan reaches a zero balance. The rate is fixed for the life of the loan
A home equity loan gives you a fixed amount of money that you pay back over a specific time period. You make fixed payments every month that reduce the loan amount until it is paid off. A home equity loan requires you to begin making payments upon receiving the funds — whether or not you have spent the money. Click here to apply online.
