Home Equity Loans

A home equity loan is a lump sum of money given to the qualified homeowner. It is repaid over time with fixed monthly payments. Each payment reduces the loan balance and covers interest costs on a familiar amortization schedule.

Home equity loans do not require that the money you borrow be used only for your home. You can use the money for things like college education, bill consolidation, vacations, cars, boats, or any type of purchase or expense.

How Home Equity Loans Work

The "equity" figure in home equity loans is a simple math equation: Home's value minus amount owed = home equity. So, if your home is worth $200,000 and you owe $125,000, you have $75,000 worth of equity.

Most lenders offer an 80% loan-to-value rate based on your equity. With the $75,000 equity example, you could qualify for up to a $60,000 loan ($75,000 x .80 = $60,000).

You would receive the $60,000 in a lump sum, then begin a monthly repayment schedule at a fixed rate for anywhere from 5-to-15 years, though most are 5-year loans.

Because you are using your home as a guarantee and essentially borrowing from yourself, the interest rates are typically lower than you would get otherwise

Home Equity Lines of Credit

If you're looking for flexibility in the way you utilize the equity in your home, our variable rate Home Equity Line-of-Credit is the loan for you.

How Home Equity Lines-of-Credit Work

Again, the equity figure is the simple math equation: Home's value minus amount owed = home equity. So, if your home is worth $200,000 and you owe $125,000, you have $75,000 worth of equity.

With a Home Equity Line-of-Credit (HELOC), you receive a line of credit for an approved amount and borrow against that amount as needed. You can withdraw from the line of credit multiple times using several convenient methods of access.

HELOCs are flexible. You pay interest only on the amount of money that is drawn out. The interest rates are variable, so the costs can change over time.

Let TruPartner help you find out how tapping into the equity in your house can open the door to a lot of financial possibilities.