Why You Should Consider a Home Equity Loan This Fall

Summer has officially come to a close. It’s that special time of year where we welcome with open arms (some of us, at least) pumpkin-flavored lattes, autumn-brewed beers and any other normal item that can be spruced up with a splash of pumpkin magic. As autumn greets us with cooler weather and the leaves begin to change to shades of orange and gold, one can’t help but look ahead to the things they wish to improve in the coming year. If you’re looking to obtain funds for an upcoming expense, a Home Equity Loan may be the perfect solution to allow you to tap into the money under your roof.

Existing home prices continue to rise. According to The Economist website, home values in the United States are up more than 12 percent in the last five years across all markets. If you live in a booming market like Dallas-Fort Worth, Nashville and some other hot markets, home values are rising at an even higher rate. As home values keep going up, your home may also be gaining equity.

If you’re looking to obtain funds for an upcoming expense, a Home Equity Loan may be the perfect solution to allow you to tap into the money under your roof.If you aren’t familiar with how a Home Equity Loan works, it is a term loan awarded in a one-time lump sum that is borrowed from the value of your home. The loan is then paid off over a set amount of time using a fixed-interest rate. At Colonial, our Home Equity Loan program lets homeowners borrow up to 80 percent of the appraised value of their home with a maximum 15-year term.

One of the best features of our Home Equity Loan is its flexibility. A Home Equity Loan can be used in a variety of ways: paying for college for your child or grandchild, debt consolidation to avoid high interest rate credit cards, a family vacation you’ll never forget – whatever you decide, the choice is yours.

One of the most common uses of a Home Equity Loan is home improvement. Designing your dream kitchen, master suite or outdoor living space has a high probability of adding value to your home. According to ConsumerReports.Org, a kitchen upgrade can add a three to seven percent increase in sales price.

Here are the specifics of our Home Equity Loan program:

Home Equity Loans

  • $20,000 – $200,000
  • Max combined loan-to-value (CLTV) = 80%
  • 700 minimum FICO credit score
  • No closing costs to $100,000 unless appraisal is required
  • Title Policy and Title closing fees required when loan is above $100,000
  • 43% maximum debt-to-income (DTI)
  • Amortizing loan up to 15 years
  • Available for any purpose
  • Home Equity Loans offered in most states*

If you would like to know more information about a Home Equity Loan from Colonial, contact us today. One of our skilled professionals will be happy to answer any questions you have, like how much equity is in your home, repayment terms and more. Give us a call at 800.937.0423, or send us an email at HLC@GoColonial.com. We look forward to hearing from you.

*Home Equity Loans not available in AZ, FL, MA, NV and NY.

Want to read more? Visit the Colonial Wallet Wisdom Blog and read about Top Holiday Home Improvements That Will Pay You Back.


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