Home Equity Loans

Home Equity Line of Credit (HELOC)

HELOCs are an excellent option if you're seeking borrowing flexibility. With a HELOC, you are approved for a maximum line of credit based on your home equity. You can withdraw from that line of credit anytime during the "draw period". Draw periods typically range from 5 to 10 years, and you'll make interest-only payments on just the amount you've withdrawn, not the entire line of credit. After the draw period, you'll enter the "repayment period". In the repayment period, you can no longer make withdrawals from the line of credit. The repayment period generally ranges from 10 to 20 years, and you'll make payments on both the principal (amount borrowed) and interest during this time.

HELOCs are generally useful for expenses that are less predictable or are large, recurring sums, like medical bills and tuition. Because most HELOCs are variable rate, your payment amounts might not be consistent from one period to the next, making it important to consider your comfort with fluctuating payments before applying for a HELOC.

Home Equity Loan

Home Equity Loans are funded in a single lump sum. Home Equity Loans are good for large, one-time expenses like roof repairs, major car repairs, and debt consolidation. If your month-to-month income varies, a Home Equity Loan may be a good choice for you because it offers stable interest rates with predictable payments.