Home Equity Loans
Five Convenient Branches:
Hazel Dell | Battle Ground | Fisher’s Landing | Vancouver Waterfront | Ridgefield
Home Equity Line of Credit
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
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
- Less interest
- You may claim a tax deduction on the interest you pay if the funds are used for improving your home, buying a new home or purchasing a new home
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, and closing costs are low. Additionally, the interest on this loan may be tax-deductible, so we advise that you consult with a trusted tax advisor. 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!