What is a home equity loan?
A home equity loan is where you borrow money against your home. If you get a home equity loan, you are risking the roof over your family. This is your home, your shelter! It is a stupid practice to borrow more than your home is worth. Many publications have said home equity loans are the next big downfall of the consumer. The truth is that you cannot borrow your way out of debt! The way you get out of debt is by changing your habits. You need to commit to get on a written game plan and stick to it. Maybe even getting an extra job and start paying off the debt would be a good idea for your situation. Living on less than you make is a key factor. It is not rocket science; it’s just basic common sense mixed with disciplined behavior. Get started now!
A home equity loan is a form of credit for which your home is pledged as collateral. Generally, home equity loans offer a fixed interest rate and a fixed monthly payment. A standard home equity loan (also called a second mortgage) is paid off over an extended period of time. You can estimate your home equity by adding the balance of all the debts secured by your home, then subtracting the total from your home’s value.
Provident Bank’s home equity loan is a loan secured by a mortgage on your home up to the amount of the equity you’ve accumulated. It is an installment loan for a fixed sum of money with a fixed rate and repayment term that you pay back over a set amount of time. You may be able to borrow as much as 85% against your home’s equity. The minimum home equity loan amount is $10,000.
The dollar difference between the market value of your home and your current mortgage balance determines your home equity. In other words, if you sold your home this would be the cash you would receive after the sale. A home equity loan allows you to access this cash without selling your home by using your home as collateral. As you pay down your mortgage, and/or your home’s value increases, your available equity increases accordingly.
