Both loans, simply put, are loans against the equity you have built up in your home. A standard home equity loan is like a standard loan where you take the loan out for a certain amount and make regular payments on that loan. A Home Equity Line of Credit or HELOC differs from a traditional home equity loan in that it offers a revolving line of credit. Like the available balance on your credit card, you can use the full amount of your HELOC or borrow against it in smaller increments, and you will pay interest only on the amount you borrow.
If you are looking for a smart way to get the money you need, either a standard home equity loan or a HELOC might be right for you. Both offer the flexibility of easy access to your money with the security of a low rate. And because they are secured by the equity in your home, the interest you pay might be tax-deductible!*
These loans are also a great alternative to high-rate credit cards. These versatile loans can be used for just about anything, from consolidating high-interest debt and tackling home improvements to financing a college education or paying for your child’s braces. You’ll get the money you need at an affordable rate with payments that are right for you.
For more information about how a home equity loan or HELOC can benefit you, and which may be best for your situation, call a Better Banks loan officer or visit www.betterbanks.com.
*Please consult your tax advisor.