If you've paid off a significant portion of your mortgage or the value of your home has gone up, you could have a good amount of equity. Use it to get a loan or a line of credit with a low interest rate and affordable payments -- let us help you get the financing you need!
|Type||Home Equity Line of Credit (HELOC)||Home Equity Loans|
|How It Works||Functions like a credit card with a limit based on a home's equity*||Functions like a mortgage with a loan amount based on a home's equity*|
|How Money is Received||Apply once and draw funds as needed for a 10 year period||One up-front lump sum|
|Interest Rate||Variable interest rate||Fixed interest rate|
|Pay Interest On||Only pay interest on what you draw from your line of credit||Pay interest on the total loan amount borrowed|
|How You Repay||For first 10 years, billed for interest only (draw period), and any extra paid during those years is applied to principal. After the draw period ends, payments become principal and interest to satisfy the debt within the 15 year amortization period.||Fixed payments of principal and interest (predictable repayment)|
|Taxation||Interest paid may be tax-deductible**||Interest paid may be tax-deductible**|
|Decision-Making||Made locally, in Harbor County area||Made locally, in Harbor County area|
|Best For||Recurring expenses (ex. tuition, medical bills, home repairs, home improvements)||Non-recurring expenses (ex. major home renovations, consolidating debt)|
You may qualify for our Dreamline Home Equity Line of Credit!
*Home equity is the difference between the home’s value and the first mortgage balance. The credit limit on a home equity loan is a percentage of the home’s appraised value and subtracting from that the balance owed on the existing mortgage. Read our Home Equity Line of Credit Brochure (PDF) for more information on a Home Equity Line of Credit.
**Consult a tax advisor.