Making Your Home’s Equity Work for You

There are a lot of benefits to owning a home. Home equity is one of the biggest. Your home’s equity is a powerful financial tool that you can use to achieve personal and financial goals. A Home Equity Loan is one tool used to make your home’s equity work for you.

Difference between a HELoan and a HELOC:

1. What is a Home Equity Loan: A Home Equity loan, often referred to as a HELoan, is a second mortgage loan, used to borrow money against the value of your home. Think of it as a way to use the value of your home to get cash for things like home improvements, paying off debt, or other big expenses.
2. Withdrawal term: A HELoan is a one-time, lump sum withdrawal, making it ideal for one-time expenditures. A HELOC is a revolving credit line, that allows multiple withdrawals over a period of time. A HELOC would be more suited for ongoing expenses and projects when you need access to funds multiple times over a period of time.
3. Rate Difference: A HELoan has a fixed rate and fixed payment that never changes. HELOCS have a variable rate, and the payment varies depending on the current rate and your current balance. The payment will also increase significantly when the draw period of the HELOC ends, and the loan is set up on a repayment schedule.

Key Points

1. Equity is the difference between your home’s current market value and the outstanding mortgage balance(s).
2. Fixed-Rate Terms: Our home equity loan has a fixed interest rate, meaning the rate and monthly payments remain consistent over the life of the loan.
3. Lump Sum Withdrawal:  This is a one-time, lump sum withdrawal of equity, which is then repaid over a set term.
4. 10-30 Year Terms: We offer a range of terms from 10 years up to 30 years to tailor a monthly payment that fits your needs. These loans can be used for various purposes, such as home renovations, debt consolidation, debt relief, or other significant expenses.

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