Home Equity Loan or a Home Equity Line of Credit

Home Equity Loan or a Home Equity Line of Credit?

Turn the equity you have in your home into a source for home improvements, bill consolidation, and more. Both Home Equity Loans and Lines of Credit can have pros and cons depending on the reason you are borrowing. We can help you determine the best option based on your financial situation. Clinton National Bank offers competitive rates and flexible payment options.

What is a Home Equity Loan?

Fixed-term Home Equity Loans allow for a consistent payment and interest rate for the loan term or “life” of the loan. This option works well if you borrow with a specific financial goal in mind, like paying off educational expenses, consolidating debt, or undergoing a large-scale home remodeling project. Home Equity Loans generally have a lower interest rate than other personal loans or credit cards. It’s important to remember that the collateral on this loan will be your home.

Talking with us about your needs and budget can help us determine whether this is the right type of loan for you.

What is a Home Equity Line of Credit?

Home Equity Lines of Credit allow you to create a pool of available credit to draw on as you need. You always know the maximum amount you have available to borrow. As you pay down your line’s balance, the money becomes available for you to use again and again. Lines of Credit have a variable interest rate meaning the rate you pay can change from time to time.

We are an equal housing lender and would be happy to discuss which loan might be right for you.