Home Equity

Home Equity Loan Types

Your home’s equity is worth more than just renovations – home equity can also help you pay for college, consolidate debt, and more!

There are two types of home equity, and each satisfies different needs.

Home Equity Line of Credit

A Home Equity Line of Credit (HELOC) is an open-line and available at any time. The benefits of a HELOC include:

• The option to receive cash up front, with the flexibility to use your line of credit at any time for any expense
• Flexible payment options
• Interest paid may be tax deductible¹
• Lower interest rates than credit cards

Home Equity Loan

A Home Equity Loan, also known as a closed-end second mortgage, is a solution to get cash for a one-time need and specific amount, such as remodeling your kitchen, and paying off the loan in a 5-year period. The benefits of a home equity loan include:

• Provides cash for a one-time need
• Fixed monthly payments
• Interest paid may be tax deductible
• Lower interest rate than credit cards

Want to learn more? Call us (719) 309-3339 or visit us at any Bank Central location.