Your home is many things — it's your shelter, a safe place to raise your family, and the backdrop for all of life’s adventures.

But your home can be even more than that. With a home equity loan or a home equity line of credit, your home can also help fund other financial goals. 

Home equity refers to the market value of the home minus the remaining mortgage balance. Whether you’re looking to remodel, finance your child’s education, or access funds for other reasons, home equity can help. Talk to us about whether a home equity loan or a home equity line of credit might be right for you. 

A home equity loan lets you borrow a lump sum against the value of your home.

The repayment term is usually a fixed period, typically from 5 to 15 years. Usually the payment schedule calls for equal payments that will pay off the entire loan within that time. Home equity loans feature fixed monthly payments at a competitive rate, with low closing costs.¹

Good for:

Those who need a set amount of funds for a specific purpose, such as an addition to their home, or to pay off a specific amount of debt

Advantages of a home equity loan:

• Lock in your interest rate for the life of the loan
• Spread the cost of your home improvement over time
• Use leftover funds for debt consolidation, family expenses, and more
  

A home equity line of credit is a form of revolving credit.

A specific amount of credit is set by taking a percentage of the appraised value of the home and subtracting the balance owed on the existing mortgage. Income, debts, other financial obligations, and credit history are also factors in determining the credit line. Some lenders will charge membership or maintenance and transaction fees every time you draw on the line. Interest is usually variable rather than fixed.

Once approved, you have the flexibility to tap funds whenever you need them, so whether you tackle a full-blown remodel — or just do a few upgrades — you’ll have the funds on hand. 

Good for:

• Those who need varying amounts of funds for different purposes at different times
• Those who need to have quick access to their home equity at a later time

Advantages of a home equity line of credit:

• You can take out small sums periodically, as opposed to one lump sum
• Interest will only be charged when you deduct the money
• Zero closing costs²
• No annual servicing fee

Lines are available for up to $350,000³ depending on your credit and your home’s value. Tapping your line of credit is as easy as writing Equity Checks, using your HELOC debit card for purchases, or transferring funds from your line of credit to another account.