HELOC vs Home Equity Loan
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One of the biggest advantages of owning your own home is the equity that you build in it. Equity is the vault of value your home has and is the difference between the market value of your house and the amount you owe.
How to calculate your home equity
To determine how much equity you have in your home, figure out the difference between the appraised value of your home and your current mortgage balance.
Your home’s equity gives you the ability to use a Home Equity loan or a Home Equity Line of Credit (HELOC) (All loans subject to approval) for what you need - home improvements, consolidating debt, taking a trip, education, etc. These home loan options help make the most out of your home’s value. So, out of the two, which will work best for you?
A Home Equity Line of Credit (HELOC)
- Allows you to take out a loan using your home’s equity
- Borrow as much or as little as you need
- A Numerica HELOC includes a HELOC Visa® card, making it easy and convenient to use your funds
- Flexibility to transfer a portion or all of the balance to a fixed-rate loan
- During the time you can borrow from the line of credit, monthly payments often only cover the interest
A Home Equity Loan
- Commonly referred to as a second mortgage
- Paid in one large, lump sum
- Typically has a fixed interest rate on the entire balance
Want to know more? Stop by your favorite branch or call 800.433.1837.