Do you have new or unfinished Home Improvement projects and need the money fast to complete them?
Do you want to update or upgrade your home?
Do you need to refinance a car loan?
Types of Home Equity Debt
Home Equity Lines: home equity lines act like a credit card. You borrow on the line and pay only what you spend.
Home Equity Loans: the amount of loan is taken at closing and paid back in a specified timeframe, usually 10 or 15 years.
Line of Credit vs Home Equity Loans
The home equity loan is paid off over a set period of time, with a fixed interest rate and the same payments each month. Since the amount is fixed, you cannot borrow more than the value you have received for this loan. Read more about home equity loans vs heloc.
The home equity line of credit works as a credit card, you can withdraw as much as you want, up to the credit line limit you have been accepted for. A HELOC gives you a revolving credit line, much like a credit card. As you pay off the principal, you can use the credit all over again.
For instance: if you borrow a home equity line of credit for $5,000 and use $2,000 for remodeling purposes, you will own $2,000 and still have $3,000 of credit available. If you decide to pay back $1,000 then your "available credit line" is $4,000.
Which one should you choose?
To find out if a home equity loan or home equity line of credit best suits your current and mid to long-term financial situation, fill out the application and answer a few questions.
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The home equity loan is paid off over a set period of time, with a fixed interest rate and the same payments each month. Since the amount is fixed, you cannot borrow more than the value you have received for this loan. Read more about home equity loans vs heloc.
The home equity line of credit works as a credit card, you can withdraw as much as you want, up to the credit line limit you have been accepted for. A HELOC gives you a revolving credit line, much like a credit card. As you pay off the principal, you can use the credit all over again.
For instance: if you borrow a home equity line of credit for $5,000 and use $2,000 for remodeling purposes, you will own $2,000 and still have $3,000 of credit available. If you decide to pay back $1,000 then your "available credit line" is $4,000.
To find out if a home equity loan or home equity line of credit best suits your current and mid to long-term financial situation, fill out the application and answer a few questions.