Home Equity Loans & Lines of Credit

Core Bank offers flexible home equity loans and lines of credit to our customers. Whether you’re financing a home improvement project or your child’s college tuition, we’re here to help you find the loan option that’s right for you!

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How Does a Home Equity Loan or HELOC Work?

Home equity loans and lines of credit allow you to borrow a lump sum against the equity of your home as collateral. Your home’s equity is the current property value minus the amount that you owe. When you secure a home equity loan, or a second mortgage, you’ll have a fixed interest rate that is lower than many other loans, along with predictable monthly installments.

How Can I Use a Home Equity Loan?

You can use a home equity loan or HELOC for a variety of purposes.

  • Finish Home Improvement Projects or Repairs
  • Consolidate Personal Debt
  • Fund Your Wedding or Education
  • Pay for Business Expenses
  • Cover Medical Bills
  • Finance a Vehicle or Large Purchases
  • Plan a Dream Vacation

Want to learn more about which option is right for you, how to get a good rate, or if the interest is tax deductible? When you work with Core Bank, our team of experienced professionals will help you better understand your options. Learn more about our available HELOC and home loan options!

Home Equity Loan vs. Line of Credit

While home equity loans and lines of credit both use your residence as collateral, they’re very different in how they work and each have their own advantages and disadvantages.

Home equity loans come with fixed payments for a specified term, giving borrowers a predictable schedule of payments over a defined period of time. They often arrive as a lump sum with a lower fixed interest rate compared to other loans. Additionally, qualified loans are tax deductible.

Home equity lines of credit operate similarly to a credit card, offering you the flexibility to draw money as you need it so you only pay interest on the money that you use. Note that HELOC interest rates fluctuate over the life of the loan, meaning your monthly payments can change. On top of that, you’d have to be discipline and track the amount of money you withdraw each time or you might overspend more than your home equity.

Why Choose Core Bank for Home Equity Loans?

Choose Core Bank for flexible home equity loan rates, easy refinancing, and terms unique to your credit score.

Competitive Interest Rates

Benefit from our variable interest rates and unique repayment structure. Pay only interest for the first 61 months for more flexibility in your budget before transitioning to Principal and Interest (PNI) payments.

Easy Refinancing Options

Refinancing is hassle-free with Core Bank. Adjust your terms easily to suit your changing financial needs and enjoy a smoother loan experience.

Personalized Rates Based on Credit Score

We value your credit responsibility, which is why we offer personalized terms tailored to your credit standing. The better your credit score, the better interest rate you can receive.

When Is a Home Equity Loan the Right Choice?

While HELOC offers easy access to flexible funds, a home equity loan is the better choice when you need the one-time lump sum of funds immediately but want to secure a low, fixed interest rate. On top of that, if you know the amount of money you need and plan on using it for only a specific expense, a home equity loan would be the right option for you.

How to Get a Home Equity Loan

Our team at Core Bank can help you decide between a home equity loan or a HELOC, then apply online for the option that best suits your needs! There are five base requirements you’ll typically need to meet to secure one of these loans:

  • Have 10% equity in your home
  • Have a credit score of at least 680 (the higher your score, the lower your rates)
  • Have a debt-to-income ratio of 41% or lower (can be approved without meeting this ratio)
  • Have sufficient income
  • Have a reliable payment history

Home Equity Loan & HELOC FAQs

How do I pay off HELOCs?

HELOC loans are similar to a credit card, where you can draw money from the credit line up to your credit limit. During this draw period, you make monthly payments covering the interest on the amount you’ve taken out. Once the draw period is over, you can make regular monthly payments that include both the remaining principle amount and interest during the repayment period, similar to that of a regular loan.

What happens if I miss a payment?

If you miss a payment on your home equity loan, it will be tacked onto the principle and doubles your interest-only payment.

Are home equity loans tax deductible?

Home equity loan interest is tax-deductible if your mortgage debt is within government limits and the borrowed money was used to build, buy, or improve your home. Consult a qualified tax advisor for more information on what’s allowable.

Do home equity loans require escrow?

Lenders often require that their borrowers create an escrow account when they finance the purchase of a home with a mortgage loan. At Core Bank, we do not require an escrow account with a home equity loan.

Contact Core Bank

If you’re ready to get pre-approved for a home equity loan or HELOC from Core Bank, apply online or get in touch with our qualified team today!

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