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