Home Equity Line of Credit
If you are in the market for credit, a home equity plan may be right for you. By using the equity in your home, you may qualify for a sizable amount of credit, available for use when and how you please, at a relatively low interest rate. Furthermore, under the tax law - depending on your specific situation - you may be allowed to deduct the interest because the debt is secured by your home.*
WHAT IS A HOME EQUITY LINE OF CREDIT (HELOC)?
A HELOC is a form of revolving credit in which your home serves as collateral. Because the home is likely to be your largest asset, many homeowners use their credit lines for major items such as education or home improvements.
With a HELOC, you may be approved for a specific amount of credit - your credit limit - meaning the maximum amount you can borrow at any one time while you have the plan.
The credit limit is based on 80% of the appraised value of the home less the balance owed on the existing mortgage. For example:
| Appraisal of home | $100,000 |
| Percentage | x 80% |
| Less mortgage debt | $ 40,000 |
| Potential credit line | $ 40,000 |
In determining your actual credit line, we also consider your ability to repay, by looking at your income, debts and other financial obligations, as well as your credit history.
Once approved for the HELOC you will be able to borrow up to your credit limit whenever you want. Some of the ways you will be able to draw on your line is by writing a check from your personal account, calling us to advance the money to your account or stopping in and picking up a cashier's check for the amount you need.
*Please consult a tax advisor regarding the deductibility of interest.
To inquire on our current loan rates and terms, please contact one of our Consumer Loan Specialists, Monday through Friday 8AM-5PM Central Time, via email or at 402-330-0200 or 402-392-0400.
