Home Equity Lines of Credit (HELOC) and Home Equity Loans
Finding the Best Fit for you
Home equity lines of credit (HELOC) and home equity loans are two ways to achieve similar ends. But they are different, and understanding how each one works can help you decide which one is right for you.
A HELOC offers flexibility if you are unsure about how much or when you'll need to borrow. In contrast, a Home Equity Loan provides funds upfront.
HELOC |
Home Equity Loans |
|
Flexible funds you can access anytime. Borrow up to 90% of your home's value (minus your first loan balance) for 5 years.
|
A lump sum with predictable payments. Use your home's value (up to 90%) to pay for major one-time purchases like renovations or tuition.
|
| Revolving line of credit to use, re-advance, and reuse funds as needed during 5-year draw period | One-time lump sum with immediate access to funds |
|
Variable interest rate
(payments responsive to fluctuation market conditions)
|
Fixed interest rate and consistent monthly payments |
| Financial safety net available funds when you need it |
Structured payments with a fixed repayment period
(up to 15 years)
|
NMLS 465931
* Equity Loans are the only kind of tax-deductible interest expense available to most consumers (check with a tax professional regarding your eligibility).
Want to learn more about home financing options offered at Mainstreet Credit Union? Contact us, our mortgage lenders, or visit us in person at one of our branches located in North Kansas City, Missouri or the following Kansas cities: Bonner Springs, Kansas City, Lawrence, Leavenworth, Lenexa, Mission, Olathe.