Home Equity Loans

Let your home’s value work for you. Homeowners can use the equity in their house to finance a home equity loan to pay for debt consolidation, student loans, or home improvement projects.

There are two types of home loans you can apply for: a Home Equity Loan or a Home Equity Line of Credit (commonly called a HELOC). Both loans are secured using the value of your home. You are, in essence, converting the equity in your home to cash. Use that cash to make improvements and you could end up increasing the value of your home.

Home Equity Loan

With this type of home 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.

Consider this type of loan if:

        • You know exactly how much your home renovation is going to cost and you want to keep your monthly payments consistent.
        • You know the exact amount of the expense you want to pay off.

Home Equity Line of Credit

A Home Equity Line of Credit acts much like a credit card, or a revolving line of credit. You draw the amount of money you need, pay it back, and then borrow again.

This can be a good choice if:

        • You aren’t sure which do-it-yourself project you are going to tackle first or you want to start multiple projects at one time without knowing the exact cost of any of them.
        • You have multiple bills/expenses to pay with differing amounts.
        • A great option if you want readily available cash in case of emergencies.

home equity line of credit rates


*Offer is effective July 21, 2023. Offer may be changed or discontinued at any time. Offer requires a minimum new money loan or increase and/or draw of $10,000 with an automatic funds transfer (AFT) from a 1ST SUMMIT BANK checking account. To qualify for promotional offer, a Credit Score of 700+ is required. Maximum loan-to-value ratio is 80%. For Home Equity Loans or Lines of Credit under $250k, where collateral property is located within Pennsylvania, origination fees are waived, and automated valuation, credit, title, and other processing fees are paid by the bank. Customer is responsible for the expense associated with a professional appraisal, if required. A professional appraisal may be required if the property is outside of PA or in a flood zone (SFHA) and may also be required by the bank, or requested by the customer, to confirm property value. Property insurance is always required. Flood insurance required where necessary. Subject to credit approval. Other rates and terms are available. Consult your tax advisor about the deductibility of interest.
1-The introductory period begins on the date of account opening. After the 6-month introductory period, the APR (Annual Percentage Rate) on a home equity line of credit will be a variable rate based on Wall Street Journal Prime Rate (8.50% as of this publication date) plus a margin (currently as low as Prime Rate plus 0.0% or .50%). The maximum rate is 18% and the product floor rate is 4.50%.  This product has a $25 annual fee.