Loan • Home Equity Loan
Not long ago, consumers turned to home equity loans mostly to fund such projects as remodeling the kitchen or building a deck. Not anymore!
Today, people borrow against their home equity to consolidate debt, to pay for medical bills, college tuition, cars, business startups -- as well as home improvements.
Borrowing against home equity takes two forms: loans and lines of credit. A loan has a fixed rate for a set dollar amount and time period. A line of credit is a revolving credit that can be accessed when you need it.
Low rates are one reason for soaring popularity of home equity loans and lines of credit over other forms of borrowing. An added plus is that the interest paid usually is tax deductible. Many consumers want to get rid of their high-interest-rate credit cards and have a better cash flow and get the tax deduction.
Home equity loans are not for everyone, but in many cases they make a lot of sense. To find out if a home equity loan or line of credit is best for you, give your local branch office a call.