Equity loan or line of credit?

If you own a home, you can borrow against the equity of the home with either a loan or a line of credit. The equity in your home is the difference between what your home could sell for and what you owe on the mortgage.

With a home equity loan, the lender advances you the total loan amount upfront, while a home equity line of credit provides a source of funds that you can draw on as needed. A few other differences are shown in the chart below.

If you’re considering a loan, give us a call or stop in to discuss your options. We’ll help you find the right type of lending for your specific needs.

Payments A fixed payment amount will be required through a specific period of time. Payments are more flexible than a loan. You can make the minimum payment, pay the full balance or pay an amount in between.
Interest Interest will be charged as soon as you receive the funds. Interest will not be charged until you make a purchase or take out cash against the credit line, and you’ll only be charged interest on the outstanding balance you carry.