Home Equity Loans

Trying to pay off multiple loans or faced with a sudden expense with no liquid funds in your account? Using the equity in your home can be a great way to access cash quickly, to cover unexpected expenses that happen or even to consolidate current loans. Home equity loans are attractive to borrowers as it is money that is available based on the value of your home.

Home Equity Loans are calculated by taking the difference between what you owe on your home and your home’s market value. Home-equity loans come in two variations – fixed rate equity loan or a variable Home Equity Line of Credit (HELOC).

The difference between the fixed loan and the HELOC depends on your needs. A fixed rate Home Equity loan is great for a one-time large expense, where the HELOC is revolving credit. available to use, pay back, and use again during certain term. Monthly payments vary based on the amount of money borrowed and the current interest rate.

The benefits of home equity loans

We understand there are many reasons to consider borrowing against your home equity and in many cases, it might be the only source of funding available for large expenses. In order to be competitive with other types of loans, home equity loans offer several advantages.

Guarantee of Approval: Since you are using the home to borrow against. It serves as an assurance, therefore it is generally easier to qualify for a home equity loan than other loans because you are using your home as security.

Low Interest Rates: Interest is typically lower than credit cards and personal loans because your home is used as collateral.

No Questions Asked: You can use the home equity loan for whatever you want.

No Change in Payment: Fixed monthly payment and interest rate are an attractive feature of a fixed rate home equity loan, no added fees will be applied, therefore you can plan your monthly payment easily. With a variable HELOC – you only pay back what you borrow. Just that easy!