Home equity loans are a smart way to finance many of your personal requirements. Not many homeowners are aware of how much cash flow they can generate to help meet their needs by leveraging the equity they have built in their home. Whether you want to make some renovations to your existing home, pay for your child’s education, invest in another property or stock, consolidate debt or take a much needed vacation—there are so many of life’s needs you can pay for using your home.
The amount you can borrow depends on how much equity you have. Your Eaton Federal mortgage expert will be able to guide you on how best to go about it.
Advantages of Home Equity Loans
- They carry a lower interest rate than most credit cards and unsecured loans
- You can qualify for relatively large loan amounts (based on available equity)
- Consolidate other high-interest debts into a single low interest payment
- Unlike other loans, the interest you pay on a home equity loan may be tax deductible, regardless of what you use it for… learn more
- It is a good option to bridge a short financial gap
Types of Home Equity Loans
Typically, there are two types of equity loans homeowners in the Mid-Michigan area can apply for. One is a fixed home equity loan and the other is a home equity line of credit (also referred to as a “HELOC”). A fixed home equity loan provides you with a lump sum, one-time disbursement based on the equity you have accumulated, and gets paid back monthly with a fixed interest rate within a specific time frame up to 15 years. A HELOC on the other hand functions like a credit card. You are allowed to borrow up to the specified amount for the life of the loan and your payment is the interest accumulated on your daily outstanding balance during the monthly cycle. As you make voluntary principal payments to reduce the loan balance, those funds are available for future access.
Both have their advantages. Our home mortgage loan officers will be happy to help you evaluate your options.
Easy Home Equity Loan Application Process at Eaton Federal
At Eaton Federal Savings Bank, we offer fixed home equity loans or revolving lines of credit. Our experienced home equity loan team is dedicated to helping you find the right borrowing solution for your needs. You can count on us to look out for your best interests as well as provide you with top notch service.
Best service aside, what our customers truly value is our simple and quick home equity loan application process. Since 1937, we have been helping individuals and families in the Mid-Michigan area meet their many financial requirements.
Learn how to make applying for a home equity loan easier.
When you come to Eaton Federal for a home equity loan, you will enjoy competitive rates, personalized attention and honest advice.