Home Equity Loans

Home equity loans and lines of credit can be versatile tools for making the most of the equity you've built in your home. However, due to the current lending environment, not all lenders are currently offering these types of loans.

A home equity loan is a type of loan that allows a homeowner to borrow against the available equity they've built up in their home. For example, if your home is worth $200,000 and after paying your mortgage for a number of years you only owe $50,000, then you have $150,000 in equity in your home. Typically these loans are offered as a 15 year fixed rate loan and are subordinate to your current 1st mortgage.

A home equity line of credit (HELOC) works similarly to a credit card because you have access to credit as you need it. With this type of home equity borrowing, your credit limit is fixed at a certain amount, and you can access funds up to that amount during the draw period. Each time you borrow money, the amount you borrow is subtracted from how much is available, until you pay it back. After you have repaid the sum borrowed, you are free to use it again. This is referred to as a revolving line of credit.