Understanding Home Equity Loans: They Work for You!

A home equity loan or line of credit allows you to borrow money using your home's equity as collateral. Your home equity is the difference between how much your home is worth and how much you owe on the mortgage. That money can be used for anything you want: home improvements, college tuition, a vacation or even a new car!

There are two types of loans that you can obtain, each with their own advantages. A home equity loan is a one-time lump sum that is paid off over a set period of time with a fixed interest rate and the same payments each month. Once you get the money, you cannot borrow further from the loan. A home equity line of credit, or HELOC, allows you to borrow up to a certain amount for the life of the loan and withdraw money as you need it. It can be accessed again and again for whatever needs you have.

A HELOC gives you great flexibility because you can access your money as you pay off the principal. Heritage makes it even more easy by allowing you to access your money at your local branch, by check or over the 24-Hour Teller Line. If you have a specific loan amount in mind, a home equity loan can give you the ease of steady payments and a fixed rate.

A loan officer at your local branch can answer any questions you may have about home equity loans. Call or stop by today!