Home Equity Line of Credit
Your home can help you achieve what you’ve been dreaming.
Whether it’s the renovation you’ve been dreaming of or an emergency expense, there’s cash in your home to help you cover it. One of the benefits of home ownership is the ability to build equity over time. The M&F Bank Dream Big Home Equity Line of Credit can offer lower interest rates than some other types of loans and features flexible repayment options.
Best For You If
You own a home.
*No closing costs up to $1,500. **Consult with a tax advisor to determine whether the interest you pay is tax deductible). Minimum draw of $20,000 required at closing.
What’s the difference between a HELOC and a Home Equity Loan?
A HELOC and Home Equity Loan sound very similar, but have distinct differences that will help you determine which lending product is best for you to renovate your home, fund a large purchase or expense, pay off credit card or high-interest debt, or even start a business. Both products should be considered with care and used responsibly as they are secured by your home.
What does HELOC stand for?
What is a home equity line of credit?
How is the equity in my home determined?
What can I do with a home equity line of credit?
● Paying down credit card or other high-interest debt. Since your home is being used as collateral on the line, it typically has lower interest rates than other types of loans.
● Covering unexpected expenses or large purchases. If your emergency fund or savings won’t cover an expense or if you would like the flexibility to pay over time, the funds from your HELOC can help you do this. This may include medical bills, repairs, or other large expenses.
● Education costs. If you or your children are thinking of going to college, in many cases the rates on a HELOC are lower than the rates on student loans. With a home equity line of credit you have the option to make tuition payments as they are due and repay them over time.
What are the repayment terms on a HELOC?
What is the interest rate on a home equity line of credit?
What is a home equity loan?
A home equity loan — sometimes called a second mortgage — is a loan that uses your home as collateral. When you take out a home equity loan, you receive funds based on the amount of equity in your home.
How can I use a home equity loan?
What are the repayment terms on a home equity loan?
What is the interest rate on a home equity loan?
Home Equity Line of Credit vs. Home Equity Loan
Home Equity Line of Credit
Revolving line of credit
Typically a 5-10 year draw period, followed by a 5-10 year repayment period. Requires refinancing to continue using the line at the end of the repayment period.
Home Equity Loan
Predetermined repayment term set at the beginning of the loan
If you’re struggling with your mortgage payments, try this short educational lesson to learn the steps to take before missing a mortgage payment, how to get back on track, and what options are available to you.