Do more this summer with your home's full potential

 

Remodel the kitchen, pay for college tuition, take a family vacation – is your summer to-do list stacking up? Utilize your home’s full potential and conquer summer with a Home Equity Loan.

 

How does a Home Equity Loan work? We’ve broken it down into the most important things you need to know.

 

What is a Home Equity Loan?

A home equity loan allows you to borrow against your home’s value. The loan amount is determined by the value of the property and is secured by your home as collateral. 

 

What can I use my Home Equity Loan for?

Home Equity Loans don’t have to just be used on house related expenses. It can be used on just about anything including:

• Debt Consolidation

• Wedding Expenses

• College Tuition

• Medical Bills

• Family Vacation 

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Why use a home equity on these type of expenses? Home equity loans typically have much lower rates than a personal loan or credit card. That means bigger savings over the life of your loan.

 

Traditional Home Equity Loan VS Home Equity Line of Credit

A traditional home equity loan is a fixed rate program that lets you borrow in one lump sum. This is a great option if you know the exact amount of your expense.

 

A Home Equity Line of Credit (HELOC) offers more flexibility to borrow and repay money as often as you need, up to your limit. A HELOC is ideal when the final cost is unknown or if you are looking to have a safety net if emergencies come up.

 

Finding the Right Lender

Before you fill out an application and sign the loan papers, here’s what you should ask your lender to make sure you are getting the best rates and lowest fees.

• Are there closing costs?

• How much is the appraisal fee? 

• Is there an annual fee?

• Is there a minimum draw requirement?

 

Whether you are planning to build an open concept kitchen or consolidate your debt, working with a local financial institution that you can trust will ensure you find a Home Equity Loan that is fit for you and your home.