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.

1Consult a tax advisor regarding the deductibility of interest