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Home Equity Loans vs Home Equity Lines of Credit

Which is the best option for you?
Home Equity Loans Home Equity Lines of Credit
  • The security of a low fixed rate which will never change during the term of your loan
  • Variable interest rate which is lower than most credit cards, but that changes as the Prime Rate changes
  • With fixed monthly payments, you'll know exactly how much you owe each month
  • Payments vary based on interest rate at the time of repayment and amount drawn
  • Receive the entire loan amount up front to use for a specific purpose
  • The convenience of a revolving line of credit, so you only access what you need. The rest offers a safety net for unexpected future expenses.
  • Great for debt consolidation, college tuition, vehicle purchase, substantial home improvements or other large purchases
  • Great for ongoing expenses like remodeling your home, paying for college tuition, and as a safety net for the unexpected
  • Minimum term period of 5 years; maximum term period of 15 years
  • 10-year draw period and 10-year repayment period

Both offer: 

  • No annual fee
  • No upfront closing costs or fees if your initial Home Equity Loan or Home Equity Line of Credit initial advance is $25,000 or greater (see your initial disclosures for complete details).
  • The ability to borrow up to 85% of your home’s appraised value** 
  • Possible tax deductible interest. Consult a tax advisor for details.

*APR=Annual Percentage Rate. *APR=Annual Percentage Rate. **Minus any balances owed. Your amount may vary based on credit qualifications.