Home Equity Line of Credit
With a Home Equity Line of Credit, you have access to a revolving line of credit to borrow funds as needed, and only pay interest on the amount you have pulled from the line. You can use to cover emergency expenses, home improvements or large purchases. You can borrow up to 80% of the available equity in your primary residence. There is no annual fee and easy access to funds by just calling and requesting a check or deposit. The variable rate is adjusted semi annually in March and September and the rate is computed by adding 0.50% to the current prime rate as per the Wall Street Journal. The interest you pay may also be tax deductible, please consult your tax advisor. Some fees my apply. View more information about Home Equity Lines of Credit.
Contact us to apply for a Home Equity Line of Credit.
Home Equity Line of Credit Example
To determine the amount of equity available on your property, take the market value of your property and multiply by 80%. The balance of your mortgage should then be subtracted from this amount. The final amount equals the equity available for borrowing purposes.
Calculate Your Available Home Equity
|Market value of property||$120,000|
|Multiply by 80%||x 80%|
|Subtract mortgage balance||- $75,000|
|Equity available to borrow||$21,000|