Do It Yourself With a Home Equity Loan or Home Equity Line of Credit
DIY Project? Use your home’s equity pay for its own improvements!
Put your home’s value to work so YOU can get to work with a home equity loan from 1ST SUMMIT BANK. We can fund your next do-it-yourself, home improvement project by using the equity in your house.
With rates at a historic low, now is a great time to borrow and turn your “honey-do” list into a “honey-done” list.
Differences Between a Home Equity Line of Credit and a Home Equity Loan
There are two types of home loans you can apply for: a Home Equity Line of Credit (commonly called a HELOC) or a Home Equity Loan.
Both loans are secured using the value of your home. You are, in essence, converting the equity in your home into cash. Use that cash to make improvements and you could end up increasing the value of your home.
Do you need a Home Equity Line of Credit or a Home Equity Loan? We’ve outlined the differences between both loans in this helpful infographic:
What is a Home Equity Line of Credit?
A Home Equity Line of Credit acts much like a credit card, a revolving line of credit. You draw the amount of money you need, pay it back, and then borrow again. There’s a fixed term (usually 5 to 10 years) for how often you can borrow and repay the loan. The interest rate is variable.
- If you aren’t sure which do-it-yourself project you are going to tackle first or if you want to start multiple projects at one time without knowing the exact cost of any of them, a line of credit is an option to consider.
What is a Home Equity Loan?
With a Home Equity Loan, all the funds are delivered in one, single, lump sum. The loan has a fixed repayment term with a fixed monthly repayment amount and a fixed interest rate.
- If you know exactly how much each do-it-yourself project is going to cost and you want to keep your monthly payments consistent, this type of home loan is the option to consider.
Home Equity Credit Line Get an estimate on how much you can borrow on a Line of Credit with this handy calculator. The loan amount is based on the difference between the home’s current market value and the mortgage balance due.
Take advantage of our current home loan rates and set up a home loan today.
Our Professionals are waiting to assist you.
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