There are many options homeowners can use for financing projects or paying bills. The most common choice is to take out either a Home Equity Line of Credit or a Home Equity Loan. So, which method is better? What are the differences between the two?
If you’re curious about HELOC vs. HE-Loan, we have you covered. We’ll explain the basics of leveraging your home’s value to gain secured funding, plus we’ll review how to do it at a great rate. Continue reading for details.
What is home equity?
Home equity is the difference between what is owed on a mortgage loan and the home’s current market value. The amount matters because the more your home is worth, the more leverage you have to borrow. We all know that the housing market has boomed over the past few years. It’s the perfect time to take advantage of increasing values.
HELOC benefits and functions
With a Home Equity Line of Credit (HELOC), borrowing is flexible and works as a revolving line of credit. Homeowners use their homes as collateral and have a pre-determined limit and draw period. Additionally, rates are adjustable. Borrowers choose HELOCs because those rates are often less than using a credit card.
Apply for a Home Equity Line of Credit:
• Save up to $650 on closing costs¹
• Up to 80% loan-to-value for qualified borrowers
• Competitive rates
• No annual or transaction fees
• No application fee
• Adjustable rate**
• Call 727.431.7690 to get started
Features and advantages of a HE-Loan
A Home Equity Loan (He-Loan) is another practical method of secured borrowing. It is often referred to as a second mortgage since you keep your first mortgage in place. Benefits include no annual or transaction fees and possible tax deductions. Homeowners receive a lump sum disbursement when they take out a HE-Loan. Also, when repaying, the monthly payment stays the same for the life of the loan.
Open a Home Equity Loan with Achieva Credit Union:
• Low, fixed rates
• Keeps your first mortgage in place
• Possible tax deductions
• Up to 90% loan-to-value for qualified borrowers²
• Competitive rates
• No annual or transaction fees
• No application fee
• Contact a Mortgage Loan Officer at 844.658.3701
Great options for homeowners
We hope we’ve helped you learn how to decide on HELOC vs. HE-Loan. Using the tips above, you can make the best decision for your household. We look forward to helping with your lending needs. For additional products and services, please visit www.achievacu.com.