Home Equity Basics
What’s the difference between a home equity loan and home equity line of credit?
A home equity loan is a lump sum of money, received all at once to cover a large expense – like home improvement projects. Compare that to a home equity line of credit, which works more like a credit card.
When borrowing from your home equity, consider whether a continuing source of funds (home equity line of credit) or lump sum (home equity loan) will best help you achieve your goals.
Frequently Asked Questions
What does an 80% loan-to-value mean?
How do I access the funds?
How can I use the funds?
How long is the application process?
How do my debts get paid off?
What is debt to income and lien position?
- Debt to income ratio would include all your monthly debt payments divided by your gross monthly income.
- Lien position is the position in which a lender is securing a loan. In the event a borrower defaults on a loan, the property or asset used as collateral will pay back a first lien position first, then second and so forth. Mortgages are typically in first lien position, while home equity loans and lines of credit can be in first, second or third position.
What is Prime Rate?
Tap into the equity in your home when you need to with a reusable line of credit.
Cash out and make the most of your home's value with a single large loan.
Home Equity Loan Calculators
Questions? We're up for the challenge.
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