Home Equity Loans & Line of Credit

Learn about home equity financing. Home equity works as a second mortgage, choose from home equity loans or home equity line of credit.

What are your current financial needs?

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.

Related Home Equity articles

Home Equity Loans

Advantages of a Home Equity Loan? Certainty of a fixed rate - You are able to lock in a fixed rate on a home equity loan for the period of time you want. It will not change at any time like the HELOCs change with Prime. Rates are usually higher than the HELOC simply because it is a fixed rate...

Home Equity Loan Without Equity

Assess your home equity The best way to determine how much you should request in a home equity loan is to have your home and certain possessions appraised. If you are already a home owner, chances are you can receive some type of funds for a home equity loan, even if you think you have no equity. Also, if you are using certain materials...

Home Equity Loan Vs Equity Line

If you’re planning on purchasing a home soon, and want to choose a home equity line of credit or a home equity loan, there are a few things to consider before you make your final decision. Here are some of the things that will help you to select the best home equity loan for your and your family. Home Equity Evaluation ...

Home Equity Line Of Credit

Home equity lines are ideal for many people with unique and different financial situations. Some of the most common circumstances to request a home equity line of credit are: unexpected expenses (medical expenses, college tuitions), home improvement projects (bathroom or kitchen remodeling, installing a new roof, new home addition, etc...) or debt consolidation. Or take out a low interest home equity loan to facilitate a...

Home Equity Glossary