Home Equity Loans
Understanding the different types
What is a Home Equity Loan? A home equity loan is a fixed rate loan, secured by your home, where you will receive a lump sum of money and pay it back over a specified period of time.
What is a Home Equity Line of Credit? A home equity line of credit is a variable rate loan, secured by your home, from which you can draw on an as-needed basis. The draw period is five years with minimum payments of interest only. At the end of the draw period, repayment of the full balance outstanding may be required.
A Home Equity Loan or Line can be used in many ways:
- Home Improvements
- Education
- Automobiles & Boats
- Weddings
- Appliances
- Debt Consolidation
- Vacations