Ann Smalberger

Home Equity Loan

Choose a home equity loan if you need a one-time lump sum to use as you wish.

• No annual fee or prepayment penalties.
• Fixed monthly payments make budgeting easier.
• You may be eligible to borrow up to 95% of your home’s equity.

Home Equity Line of Credit (HELOC)

Choose a HELOC if you need a revolving credit line for maximum flexibility. You only pay interest on the balance you use.

• No annual fee or prepayment penalties.
• You may reuse the line of credit as balance is repaid.
• You may be eligible to borrow up to 95% of your home’s equity.
• 10-year draw period, with up to a 15 year repayment period.

To determine how much equity you have in your home, figure out the difference between the appraised value of your home and your current mortgage balance.

Here's a simple formula to calculate your home's equity:

Current Appraised Value of Your Home ($250,000)

minus

Outstanding Balance ($150,000)

=Your Equity ($100,000)

Several websites, such as Zillow or Redfin, can help to provide a rough estimate of your home's value. Looking at what comparable home in your area have sold for is another great point of reference.