Personal Lines of Credit: How Local Community Banks Serve You Better Get Your Teen Started on the Right Financial Foot Now's the Best Time to Save for College 6 Financial Tips for Newlyweds Cut the Cake and Your Wedding Expenses 8 Things to Remember When Buying Your First Home What is a CD ladder and why should you have one The feature you could be missing out on Spot and avoid email scams Optimizing resources Stabilize your income with crop insurance The best tenant: you! Skip daily trips to the bank Secure transactions Locking in a mortgage rate Lower your mortgage payment Do you need renter's insurance? Cash where you need it Protecting your credit card activities Save for a vacation you can afford A simple way to prepare for 2019 Spreading holiday cheer Shop smart this holiday season Make holiday shopping simple Marriage and money Sustainability in action Tap equity for winter remodel When to consolidate debt Is your coverage complete? Insuring your student is covered It can pay to buy Financial planning for every age Evaluating a home's foundation Spring clean your finances Tap into your home’s equity Kick credit card debt Cozy up to a winter mortgage Resolve to save more Snow bird safety tips Saving this holiday season Lessons outside the classroom Go farther with an auto loan Tips for smart college borrowing A mortgage term you can afford Five tips for a bigger down payment Tapping the equity in your home Money matters when a loved one passes Security for your sale proceeds An auto loan to take you farther What to consider when building Make your tax refund work for you Why life insurance coverage may be crucial Let your home take you farther Lower premiums could make homeownership possible Year-round tax savings tips Are you taking full advantage of your high-deductible plan? Low mortgage rates make winter financing attractive Divorce and money Planning a vacation – save now or pay more later Understanding Auto Insurance 7 Tips For Getting a Mortgage

If you’re thinking about making home improvements or buying a new vehicle, you may want to consider tapping into your home’s equity.

Your home equity – the difference between your home value and what you owe on the mortgage – can help you cover these and other expenses.

Home equity financing can be set up as a loan or a line of credit. With a home equity loan, the lender advances you the total loan amount upfront, while a home equity credit line provides a source of funds that you can draw on as needed. Either of these options can help you pay for:

  • Remodeling and home improvements
  • Car, truck, SUV or boat
  • Vacation expenses
  • Tuition
  • Wedding

Here are a couple quick facts about each to help you decide which may be right for you:

Home equity loan

  • Repay the loan with equal monthly payments over a fixed term (just like your original mortgage).
  • The amount you can borrow is usually limited to 85% of the equity in your home. The actual amount depends on your income, credit history and the market value of your home.

Home equity line of credit

  • This is a revolving line of credit, much like a credit card. You can borrow as much as you need, any time you need it, by writing a check or using a credit card connected to the account.
  • You make payments only on the amount you actually borrow, not the full amount available.
  • HELOCs may give you certain tax advantages unavailable with some kinds of loans. Talk to an accountant or tax advisor for details.

Learn more about Starion’s loan options.

Courtesy of https://www.consumer.ftc.gov/articles/0227-home-equity-loans-and-credit-lines