The Advantages of Taking an Equity Loan

Home Equity loans allow you, the homeowner, borrow money by leveraging the equity in your home. In fact, a home-equity loan’s interest is tax deductible¹ when you file your tax returns.

The fixed-rate loan, such as the equity advantage, can serve as a valuable tool for responsible borrowers. When there is a steady, reliable source of income, the low interest rate and tax deduction¹ of paid interest makes it a sensible alternative.

Fixed-rate home-equity loans can help cover the cost of a single, large purchase, such a new roof on your home or an unexpected medical bill.

How Much Equity Do I Have?

In order to calculate how much equity one has, take up to 90%² of the value of your primary residence (or up to 80%³ of your secondary residence) and subtract the amount you owe on your mortgage. The result is the maximum amount you may be able to finance.

Primary Residence Example with 70% Loan-To-Value Adjustment	Secondary Residence Example with 60% Loan-To-Value Adjustment
(0.70 x $200,000) – $125,000 = $15,000	(0.60 x $150,000) – $80,000= $10,000
$200,000 represents the residence value; $125,000 represents the remaining balance on the mortgage	$150,000 represents the residence value; $80,000 represents the remaining balance on the mortgage

What Will Be My Rate?

When the loan-to-value adjustment is 80% or less, the rates will range from 3.99% to 6.95% APR. However, if your loan-to-value adjustment is any where between 80.01% and 90%, then the rate will range from 7.00% to 7.70% APR.

What Is My Monthly Payment?

Borrowed Equity Amount	Rate	Fixed Term	Loan-To-Value	Monthly Payment
$15,000	3.99%	5 Years	70%	$276.18
$10,000	3.99%	5 Years	60%	$184.12

Contact us today to apply for a Home Equity!

¹ Contact a tax advisor for more information.

² Percentage may change or be adjusted to accommodate market conditions

³ If the secondary residence is a rental or investment property, the maximum credit limit is $50,000

Flood and /or property hazard insurance may be required.