The equity in your home is the difference between its value and any outstanding mortgages. You can use that equity to finance home improvements, college tuition, or even a large purchase, such as a car or the trip of a lifetime.
Are you weighing your options to pay for home improvements, college tuition or other major expenses? A second mortgage in the form of a home equity loan or a home equity line of credit may be worth considering. At People’s, we charge no annual fee on either of our Home Equity Loans, and closing costs are low.
We have two Home Equity products.
- A fixed rate loan for up to 15-years with a fixed payment amount for the life of the loan,
- A variable rate Home Equity Line of Credit (HELOC) which allows you to borrow funds as you need them up to a specific credit limit.
Why Choose a Home Equity Loan?
Home equity loans are a type of second mortgage. They allow you to borrow money using your home as collateral. To qualify for a home equity loan you’ll need to have equity. Home equity occurs when the value of your home is higher than the amount remaining on your mortgage. The more equity you have, the more money you typically can borrow.
Home equity loans don’t have to be used for the house itself–they can be used in a multitude of different ways! Here are some ways our members use their home equity loans:
- To renovate, remodel, or otherwise improve the house or property.
- To purchase a second home or additional land
- To fund a family member’s college education
- To consolidate debts with high-interest
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Home Equity Loans VS Home Equity Line of Credit
A home equity loan and home equity line of credit are terms that are often used interchangeably but they have their differences.
|Home Equity Loan||Home Equity Line of Credit|
|Offers a lump sum of cash upfront||Approved for a maximum amount that you can draw upon during a “draw period”|
|Fixed interest rate||Variable interest rate|
|Pay off the debt over time||Pay off debt after the draw period|
Pros of a Second Mortgage
- They provide you with the funds you need if you have enough equity
- Home equity loans can be easier to qualify for compared to other types of loans
- You may be able to claim a tax deduction on the interest you pay if the loan proceeds are used for certain purposes*
Home Equity Loan vs Refinance
An alternative to a home equity loan is cash-out refinancing. This will involve replacing your existing home loan with a new one that pays off your current one and provides you with extra funds. Just like with home equity loans, you’ll need to have sufficient home equity for a cash-out refinance.
Keep in mind, cash-out refinancing is different than regular refinancing. With regular refinancing, you only replace your existing home loan with another one. Homeowners commonly do this to lower their monthly payment and decrease the amount of interest they pay.
Home Equity Loan Rates with People’s
At People’s, you are a person, not a number. We believe that all members should be able to achieve their financial dreams, and we are here to serve you. We charge no annual fee on either of our Home Equity Loans, closing costs are low, and rates are competitive. If you are interested, or if you have further questions, our happy, friendly staff is here to help. Stop by one of our branch locations today!
*The interest on this loan may be tax-deductible, so we suggest that you consult with your trusted tax advisor
The Perks of Banking with People's
Manage your account on your terms! People’s offers convenient service that let you bank anywhere.
- Sign up for eStatements and receive your account statements by email.
- Online Banking – fast, easy, secure access to your account from anywhere.
- Mobile Banking – manage your money directly and make mobile check deposits from your phone using our app or text banking.
- Phone Banking – Live 24/7 Call Center Local: 360-695-5121 Toll-Free: 1-800-252-6525
- Phone Banking – convenient 24/7 account access from any touch-tone phone.
- Automated Phone Banking – convenient 24/7 automated account access. Local: 360-695-7559 Toll-Free: 1-877-TELLER0 (1-877-835-5370)
- Credit Card Online Access – 24/7 ability to make credit card payments and find other information on your card
- CardFree Cash℠ – No card? No problem. Get cash safely and instantly without using your debit card.
Home Equity Loans in Vancouver WA
Serving Greater Vancouver WA