|  Tapping into Your Home's Equity Home equity loans (HEL) and lines of credit (HELOC) are flexible financial tools to help you make the most of your home equity, so you can benefit from your investment. The interest rate is fixed and thus, so is the monthly payment, for the life of the loan. Use your home's equity as a low-interest way to: - Pay for Home Improvements
-
 Consolidate Debt - Buy a New Car or Pay off your Current auto loan
- Start your own Business
- Pay Medical Bills
- Pay for College
- Take a Vacation
- Purchase a Second Home
- Bonus - Many times interest paid is tax deductible (contact your tax advisor for details)
Compare Loans | Fixed Rate Loans | Reasons for Selecting | Key Benefits | | Access Money | Borrow money as you need it up to the credit limit. Each time you pay principal it frees up that amount of your credit line for later use. | Borrow the entire loan amount at once. | | Interest rate | Variable rate. Rate calculated on a margin and a prime rate. | Fixed rate. Payment stays the same for the entire term of the loan. | | Payment | Varies monthly with rate and depends on how much you've borrowed against your credit line. During the five- or ten-year draw period, you have the flexibility to pay interest only. After the draw period, your principal and interest payment vary to pay off the loan in the remaining years. | Principal and interest payment remains the same over the life of the loan. | | Loan Advances | Use your access checks to withdraw money up to your credit line amount. | No check-writing option. Entire loan amount received at closing. | Tax advantages
(Ask your tax advisor) | Interest is up to 100% tax-deductible.
| Interest is up to 100% tax-deductible. | | Other advantages | Good safety net for unexpected expenses. | Excellent choice for one-time planned expenses or to consolidate debts. | You can receive the full amount of the loan in a lump sum, and you can use the funds just about any way you like: to make home improvements, take a vacation, or buy a second home, or pay for college or medical care. Home equity loans are often used to consolidate credit card debt, high interest auto loans, or high interest personal loans, because the interest rates are nearly always much lower than the rate of interest you'd be paying on credit card debt, while borrowing the same amount of cash. Home equity loans are also frequently considered to be a tax-deductible expense, however we recommend that you check with your tax advisor for details. If you'd like more information about home equity loans, please contact a Loan Advisor. |
