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Discover a Better Way to BorrowTap into your home's built-up equity with a fixed-rate loan or flexible line of credit. You will save with great rates and a variety of terms, plus no annual fees. Why Use Your Home Equity?One of the most powerful financial tools homeowners have is their home equity - the value of your home minus your mortgage balance. Home equity loans and lines of credit let you tap into your equity and use the cash for just about anything, such as home improvement projects, college tuition, or debt consolidation. Here is a look at each option's key differences and advantages, along with examples of how they can be used. That way, you will have confidence in deciding which option is best for you. Home Equity Line of Credit (HELOC)A home equity line of credit (HELOC) allows you to tap into your home’s value to cover significant expenditures or unexpected costs. It is essentially a line of credit secured by your home equity. With a HELOC, you can borrow what you need, when you need it, up to your credit limit. And because the loan is tied to the value of your home, HELOC interest rates are often more favorable than other personal loans or credit cards. Advantages: Low Cost – Because HELOCs are secured, they typically have lower rates than personal loans or credit cards. When it makes sense: Home Equity LoanLike a HELOC, a home equity loan is secured by your home equity. However, with a home equity loan, you receive one lump sum with a fixed rate and a fixed monthly payment. Advantages: Competitive interest rates – Because valuable assets are backing the funds, interest rates on home equity loans are typically lower than other types of personal loans. Stable – Your loan’s rate, term, and amount are all fixed, so you can rest easy knowing your payments will stay the same. When it makes sense: Still Have Questions?Find FAQs, routing numbers and online banking tutorials in our Education Center. All personal loans and lines of credit are subject to RiverWood Bank underwriting guidelines and approval. Rates and terms may vary. See a banker for details. |