Home Equity Loans

Home equity loans, sometimes known as equity mortgages or second mortgages, allow you to borrow against the equity in your home. The amount you can borrow will depend on many factors including the amount of equity you have.

Equity is the difference between your home's market value and the amount you still owe on the loan. For example, if you have a home valued at $250,000 and you still owe $190,000 on your mortgage, your equity is $60,000. In most cases, you can expect to borrow up to 85% of your equity.

• Home equity loans typically have a fixed interest rate.
• Interest rates are very competitive and lower than typical credit card interest rates.
• Borrow between 85% and 100% of the equity in your home.
• Get up to 15 years to pay off the equity loan.
• Interest paid on a home equity loan is tax deductible like a first mortgage.
• Funds can be used for anything, from consolidating debt to funding college or buying a car.

If you need a large amount of money for a major expense or to make your dreams possible, a second mortgage may be a good option for you. Interest rates are very competitive, and these loans are one of the most popular ways to consolidate debt or finance a large purchase. Just remember that you are using the equity in your home and the loan is secured, so make sure you can afford your payments.

If you want access to your equity in case of an emergency or you do not need the money all at once, a HELOC may be a better choice for you.