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Why might a Home Equity Loan or Line of Credit be right for me?
- You can use a Home Equity Loan or Line of Credit to consolidate your debt. If you
have credit cards and other high-interest debt, you may be able to reduce
your monthly payments with a home equity loan or line of credit.
- You can make home improvements. Adding an extra bedroom, updating your
kitchen or replacing an old roof are all smart ways to increase your home's
value and protect your investment.
- You can use the funds for a variety of other uses, such as college
tuition, vacation expenses, or large purchases such as furniture,
appliances, or even a car.
- You may save at tax time. The interest on your Home Equity Loan or Line
of Credit may be tax deductible which can save you money year after year.*
What's the difference between a Home Equity Loan and a Home Equity Line of
Credit?
Generally, a Home Equity Loan is for a fixed dollar amount, for a fixed
period of time, with fixed monthly payments, and the borrowed amount is
received as a single lump sum.
With a Home Equity Line of Credit, you can take out the amount of money you
need, when you need it. Payments are required only when there is an
outstanding balance, and you pay interest only on the outstanding balance.
How much can I borrow?
Several factors determine how much you can borrow including the available
equity in the home, income, prior credit history and our loan limits. If
you qualify, the minimum home equity loan or line of credit amount is $5,000
and the maximum is $500,000.
Is the interest on my Home Equity Loan or Line of Credit tax-deductible?
In many cases, the interest on a Home Equity Line of Credit or Home Equity
Loan may be tax deductible.*
Is the interest rate fixed or variable?
Home equity loans may offer a fixed interest rate and the principal is
amortized over the term, while home equity lines of credit feature a
variable rate. Interest rates are based on the amount you borrow and the
loan term.
*Consult your tax advisor concerning the deductibility of interest.
Always consult with a qualified mortgage professional prior to implementing
any mortgage planning strategies. |
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