FAQ about Home Equity Loan (First part)

What can I use my home equity for?

You can use your home equity to pay for almost anything. Make home improvements, pay for college, consolidate debt, buy a new car, go on vacation.


How do I know how much my home is worth?

For the purposes of your application, estimate the value to the best of your ability. We'll determine the current value of your home by appraising the property.

How is a home equity line of credit different from a home equity loan?

Home equity credit uses the borrower's home as collateral. The three main differences are:

* Pricing. A line of credit usually has a variable interest rate while a loan may have fixed or variable interest rates.
* Access. A line of credit allows ongoing access - by check or Equity Maximizer® Visa® — to your money over an extended period of time. As you repay the money you've used, those funds become available for you to use again.

With a home equity loan, you get the money all at once then repay it over an extended period of time. Unlike a line of credit, you do not borrow, repay and borrow the funds again.
* Payments. A home equity loan generally has fixed payments, which can make budgeting easier.

A home equity line of credit generally has a variable payment that can be as low as an interest-only payment during the draw period. During the repayment period, monthly payments include a fixed principal amount plus interest.