Home Equity Lines and Loans
By using the equity that you have in your home, you can finance most anything:
- Enhance your home with new windows, install a new roof or flooring, replace your furnace or air conditioning unit, update your kitchen or bath, add a deck, pool or patio
- Celebrate a special event in your life like a wedding or take that trip of a lifetime when you retire
- Plan for an adoption
- Purchase a boat or RV
- Pay for college tuition
- Consolidate debt and more!
What is a home equity line of credit?
A home equity line of credit is great for multiple borrowing needs over a period of time, for example, multiple home repairs over the course of a few years or college tuition bills. With a line of credit, you apply once and draw from the line when you need to pay for things. Typically you will have a period of time when the line is available to draw upon, followed by a period of time where you will repay the amount borrowed. With a line of credit, your payments may fluctuate as they are normally tied to an index such as the Wall Street Journal Prime Rate.
What is a home equity loan?
Home equity loans are used for a one-time need like replacing your roof or booking a dream vacation. Payments on a home equity loan are fixed for the term of the loan making it a good choice for someone who does not have multiple borrowing needs and prefers to budget for a fixed payment.
Home equity loans and lines of credit are secured by your home. Depending on what you finance, there may be tax benefits as well. Please speak to your tax advisor for details about your specific situation.
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