What can I use my Home Equity Loan or Line of Credit for?
Home equity loans and lines of credit are often used to finance major expenses such as debt consolidation, home remodeling, medical bills, or college education.
How does a Home Equity Loan work?
First, you’ll be approved for a total loan amount you can borrow. This loan is a one-time lump sum that comes with a fixed payment amount and number of payments over the term, making it easier to plan your monthly budget.
How does a Home Equity Line of Credit (HELOC) work?
First, you’ll be approved for a variable rate line of credit equal to the total amount you can borrow. During the draw period you can advance money as you need it. As you pay off the principle, your available balance is restored, allowing you to use it again. Unlike a fixed rate loan, you only pay on the balance owed, providing flexibility to use as little or as much as you need.
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