Home Equity Loan
Your future is a series of adventures about to unfold. A home equity loan is a responsible way to pay for an unexpected expense, a home improvement or a major milestone on the horizon. Simply draw out the equity in your home and receive the funds in one lump sum payment.
Home Equity Line of Credit
You don't want the expenses of life to overshadow its joys. Take out a credit line against the equity in your home to give your budget some breathing room as needed. You decide how much to advance and when. Only pay interest on the funds you borrow.
Ready to get started?
| Home Equity Line of Credit (HELOC) | Home Equity Loan (2nd Mortgage) | |
|---|---|---|
| What is it? |
You decide when and how much money to advance. You can advance money using a check or online transfer. |
You receive all your borrowed funds upfront. |
| Repayment |
Requires monthly payments of principal and interest equal to 1% of the outstanding principal balance. Paying only the minimum payment may result in a balloon payment due at maturity. |
You repay the loan in equal monthly installments of principal and interest over the life of the loan. |
| Interest Rate |
Variable |
Fixed |
| Term |
5 years |
Usually 5 years |
| Benefits |
You will incur interest expense only on the funds you advanced and only during the time you have funds borrowed. Once established, you can access the funds at anytime, and if you are set up as an online banking user -- anywhere. Easy to setup. In most cases, this type of loan can be closed within a few days. |
Your interest rate and monthly payment are fixed and will not change during the life of the loan. |
| What to Consider |
Monthly payments increase the more you borrow. The interest rate can change during the term of the loan. |
Because of consumer regulations, these loans require specific waiting periods, which means you may wait 2-3 weeks for the loan to close. |
