A Better Kind of Loan
A home equity loan leverages the financial power of your house to get you better interest rates. Fund debt consolidation, home improvement projects, or a second mortgage by using the equity in your home. You’ll get fixed rates based on the equity you have available, no lender origination fees, and amounts up to 80% of your home’s value. Get a second mortgage with 10 and 15 year** fixed rates.
Both loans use the value in your current home to secure a low rate. A Home Equity Loan is paid out as one large sum, whereas a HELOC approves you for a limit that works similar to a line of credit or credit card, which you can then borrow from here and there as you need it (you'll only pay interest on what you actually borrow). A Home Equity Loan is great if you know exactly how much you want to borrow; a HELOC might be a better choice if you have ongoing expenses.
It depends on the value of your home and any current loans outstanding. Get pre-approved online today and start the process.
Comparing the features of each loan will help you reach the best decision:
|Cash-Out Refinance||Home Equity Financing|
|One loan and one monthly payment||Choose between a one-time loan advance or a revolving line of credit.|
|Your existing mortgage is refinanced for a higher overall amount using some of the accumulated equity in your home||You can borrow all or part of your home's equity.|
|Get immediate cash and spread the payments out over a longer timeframe||Flexibility of a shorter term to help build equity faster OR reduced monthly payments by spreading the cost over a longer term.|
|Usually a lower interest rate than home equity financing||You can borrow more money - sometimes up to 90% of the value of your home. With a line of credit, interest is paid only on the money you actually use, and you can access it whenever you want without having to reapply.|