Debt consolidation
Your Home Is Full of Untapped Potential
Access your home equity. Explore your opportunities.
Access your home equity. Explore your opportunities.
Your home equity is the difference between your home s current market value and how much you owe on your mortgage essentially, it s how much of your home you own.
With every mortgage payment, you decrease your outstanding principal and potentially increase your home equity.
Additionally, you can build home equity if your property value increases.
After you’ve built enough home equity, you can access it with a home equity loan or home equity line of credit (HELOC).
A home equity loan lets you borrow against the equity you’ve built in your home, which you’ll receive in cash at closing to use on whatever you need. The amount of money you can take out depends on how much equity you have in
your home.
This type of loan is a second mortgage in addition to your original one and typically a fixed-rate product.
Benefits:
cards.
Much like a credit card, a HELOC is a revolving line of credit that you can borrow against the equity in your home. You will be able to withdraw funds as needed during the draw period.
After the draw period is the repayment period in which you will not be able to access funds anymore and you’ll need to repay what you borrowed. HELOCs are often adjustable-rate products and are also considered 2nd mortgages.
Benefits:
cards.
Debt consolidation
Home improvement
Medical expenses
Start a small business
Buy investment property
Education tuition
Large Celebrations
Emergency Fund
And More!
HELOC (Home Equity Line of Credit) is a revolving credit line that lets you borrow as needed, up to a certain limit, using your home as collateral. It usually, but not always, features a variable interest rate, and it has a draw period during which you can access funds and pay interest only. In contrast, a home equity loan (HELOAN) is a one-time lump sum loan with a fixed interest rate and predictable monthly payments, ideal for larger, one-time expenses.
It depends on your renovation plans. A HELOC offers ongoing access to funds, which could make it a useful option for multi-stage projects or long-term upgrades. A home equity loan may be better suited for upfront, fixed-cost projects, like installing a new roof or remodeling a bathroom. Both allow you to use your home’s equity strategically, but your budget, repayment preferences, and timeline will guide the right choice.
During the draw period, you’ll usually make interest-only payments on the amount borrowed. After this period ends, you enter the repayment phase, where you begin repaying both principal and interest.
Loan amounts depend on the available equity in your home, your credit profile, and other qualifying factors. At The Federal Savings Bank, our minimum HELOC and HELOAN limit is $50,000, and our maximum loan limit is $500,000. Of course, the amount you are eligible to receive or would want to receive will vary based on the factors described above. Speak with one of our loan specialists to find your personalized limit.
Yes, applying will trigger a hard credit inquiry, which may have a minor, temporary impact on your score. However, responsibly managing your loan and making on-time payments can have a positive long-term effect.
These loans usually offer lower rates than personal loans or credit cards, making them an option worth considering when financing major needs.
Common uses include:
Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.
A HELOC is a revolving line of credit secured by your home. Borrowers can draw upon the credit as needed during the Draw Period and are only required to pay interest on the amount borrowed. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation. Closed-end second mortgages, home equity loans, and cash-out refinance loans are not a revolving line of credit like HELOCs, and typically provide a single, lump-sum payment at closing that is repaid with a fixed rate in regular installments over a set term, similar to a traditional mortgage.
