Put Your Home's Equity to Work
With each payment you make on your mortgage each month, you build up equity in your home. That equity is a tool that can be used to provide you with financial flexibility. Our home equity loan or a home equity line of credit (HELOC) allows you to put your home's built-up equity to work for you.
Contact us
Home Equity Loan vs. HELOC - Which is right for you?
Home Equity Loan | HELOC | |
|---|---|---|
Interest Rate | Fixed interest rate | Variable interest rate |
Payment Structure | Fixed monthly payments | Variable monthly payments based on the amount borrowed |
Disbursement | Lump sum disbursement at the start | Revolving line of credit, borrow as needed up to the credit limit |
Term Length | Typically 5 to 20 years | Draw period (usually 5-10 years) followed by a repayment period (usually 10-20 years) |
Best For | Large, one-time expenses (e.g., home renovations, debt consolidation) | Ongoing expenses or projects where you need flexible access to funds over time |
Repayment | Begins immediately after loan disbursement | Interest-only payments during the draw period, followed by principal and interest payments during the repayment period |
Interest Deductibility | Interest may be tax-deductible if used for home improvements (consult a tax advisor) | Interest may be tax-deductible if used for home improvements (consult a tax advisor) |
Access to Funds | One-time access to the full loan amount | Access funds as needed, similar to a credit card |
Collateral | Home is used as collateral | Home is used as collateral |
How You Can Use Your Home Equity Loan
- Home Improvements: Fund renovations, repairs, or upgrades to increase the value and comfort of your home.
- Debt Consolidation: Pay off high-interest debts, such as credit cards or personal loans, to simplify payments and potentially lower interest rates.
- Education Expenses: Cover tuition, fees, and other educational costs for yourself or your family members.
- Emergency Expenses: Access funds for unexpected medical bills, car repairs, or other urgent financial needs.
- Investment Opportunities: Invest in stocks, real estate, or other ventures to potentially grow your wealth.
- Large Purchases: Finance major expenses like a new vehicle, boat, or other significant purchases.
- Vacation or Travel: Use the funds to pay for a dream vacation or extended travel plans.
- Starting a Business: Provide capital for a new business venture or to expand an existing one.
- Retirement Planning: Supplement your retirement income or fund retirement-related expenses.