The following provides answers to your most frequently asked questions (FAQs) about Home Equity products.
What can I use a home equity loan for?
You can use the equity in your home to pay off high interest debt, improve your home, send kids to college, buy a car, take that dream vacation, or anything else you want.
How do I know how much equity I have in my house?
You can figure out your home’s equity by subtracting the remaining mortgage balance on your home from its market value. As an example, if the remaining balance on your mortgage is $125,000 and the market value of your home is $175,000, your home’s equity is $50,000.
What’s the difference between a home equity loan and a home equity line of credit?
A home equity loan provides you with a lump sum of money. You will repay a home equity loan as you would any other type of installment loan in fixed monthly payments. A home equity line of credit provides added convenience because it gives you access to money whenever you need it. With a home equity line of credit, you simply borrow what you need, when you need it. This option also provides you with added flexibility, because as you repay the principal, that money becomes available for you to borrow over and over again.