Tap the Cash Right under Your Roof


HomeEquity-webNeed extra cash for college expenses, remodeling, or to pay off credit card debt or other loans? Colonial can help with a Home Equity Loan or Line of Credit.

 

What is a Home Equity Line of Credit?

A home equity line of credit, or HELOC, is similar to a credit card, but based on your home equity. You can borrow up to a certain amount of money, up to 50% of the appraised value of your home, and the length of the loan is usually set by the lender, or you would only pay interest for the first ten years, followed by a 15 year amortization with no closing costs. Like a credit card, as you pay off the principal, your available credit to spend increases. For example, if you have a $10,000 line of credit and you borrow $5,000, then you pay back $3,500 toward the principal, you now have $8,500 in available credit. This type of loan will give you more flexibility than a fixed-rate home equity loan or a lower-limit credit card.

Our Home Equity Line of Credit for owner-occupied single family residences have very low rates based on the Wall Street Journal Prime – currently 3.25% – adjusted quarterly, and you can borrow up to 50% of the appraised value of your home. Pay interest only for the first ten years, followed by a 15 year amortization with no closing costs.

 

What is a Home Equity Loan?

A home equity loan, or term loan, is a one-time lump sum that is borrowed from the value of your home, and is then paid off over a set amount of time using a fixed-interest rate. The set loan and interest rates included in Home Equity Loans will provide you with the same payments each month.

At Colonial, our Home Equity Loan on owner-occupied single family residences let you borrow up to 80% of the appraised value of your home with a maximum 15-year term. We also offer very low rates with no closing costs.

 

Home-Improvement-Couple-webWhich option is right for me?

There are different scenarios that may apply to you that can help you decide which home equity product is right for you. For example, let’s say you need $8,000 to pay for your child’s wedding in a few months and $2,000 to replace your fence next week. You know the exact amounts needed, and both need to be paid in full very soon. If you aren’t planning to borrow again, a home equity loan for $10,000 may be the best option for you.

In another scenario, you may need money over a longer period of time to pay your student’s college bills each semester for the next couple of years. You may also be planning to renovate areas of the house now that your kids are in college over the next few years. In scenarios like these, a home equity line of credit may be the better choice because it would give you the flexibility to borrow the different amounts you need, when you need them.

 

 

Can I use Home Equity to consolidate my debt?

Many times consumers incur large amounts of credit card debt without realizing just how much they’ve spent. Fortunately, options like a lump-sum payment from a home equity loan can allow you to pay off your handful of credit card balances in exchange for a lower interest rate and one monthly payment on their home equity loan.

 

No matter which scenario applies to you, be sure to take advantage of this opportunity to benefit from historically low interest rates – much lower than you’d pay using a credit card for upcoming expenses. And that makes good financial sense.

Call us at 817-390-2291 or stop by any of our banking centers today for a friendly, professional conversation on your needs, and how a Colonial Home Equity Loan or a Colonial Home Equity Line of Credit might help.

 

Rates and terms subject to changes without notice.  All loans subject to underwriting approval. 

 

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