Home Equity Loans and Line of Credit

Here’s what you need to know

Both allow you to borrow against the appraised value of your home, providing you with cash when you need it. Here’s what the terms mean and the differences between a home equity line and loan that can help you figure out whether they’re the right fit for you.

If you’ve built up equity in your home—if it’s worth more than the balance on your mortgage—you may be able to use part of that value to meet financial needs such as cash for home improvement projects, education expenses or to pay for unexpected costs.

Home equity lines of credit (HELOCs) and home equity loans (HELOANs) are two ways to achieve similar ends. But they are different and understanding how each one works can help you decide whether one or the other might work for you.

Is a home equity line or loan right for you?

A HELOC gives you the flexibility of a financial backstop that’s there when you need it. If your roof needs repair or a tuition bill comes due when you’re short of cash, drawing on a home equity line of credit can be a convenient solution. You decide when to use the funds, and you pay interest only on the money you actually use. On the flip side, with a HELOAN, you get a lump sum of cash at loan closing and know how much your monthly payments will be and how long it will take to pay off the loan.

With either, the amount you can borrow will depend on the value of your home and the amount of equity you have available. And with both, it’s important to remember that you’re using your home as collateral—and it could be at risk if its value drops or there’s an interruption in your income.

But if you qualify and your financial situation is stable, a home equity line or a home equity loan could be a helpful, cost-effective tool for making the most of your home’s value.

You’ve worked hard to own your home. Now, let it work hard for you. A Home Equity Line of Credit can serve as a ready source of funds for planned or unexpected expenses. You can use it to pay for renovations or tuition, consolidate higher interest rate debt, or finance just about anything else that’s on your priority list. With no application fee, appraisal fees or closing costs, applying for a Home Equity Line of Credit is convenient and budget friendly. 


  • Get up to 100% of the available equity in your home
  • NO CLOSING COSTS (excluding appraisal or internal evaluation)
  • Low, competitive interest rates
  • Monthly payments can be automatically deducted from your checking account

What will it be? A dream vacation? That kitchen remodel you've always wanted? Let us help you make the most of your money. 

  • No Annual Fee
  • Interest only payments
  • Draw funds up to the approved amount at any time

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