Home Equity vs HELOC
Home Equity |
Home Equity Line of Credit (HELOC) |
|
| Features | ||
| Access to Funds | Receive all funds in one lump sum at funding | Pay Down and borrow as needed, up to credit limit |
| Most Popular Uses | Debt consolidation Home improvements Education Refinance existing home equity |
Home Improvements Education Refinance existing home equity |
| Interest Rate | Fixed | Variable during draw period |
| Rate Discounts | 0.50% for auto pay | N/A |
| Payments | Fixed monthly payment | Interest only payments during draw period |
| Minimum Loan Amount | $10,000 | $10,000 |
| Maximum Loan to Value | 80% | 80% |
| Closing Cost | Avg $150** | Avg $150** |
| Terms | Up to 15 years | 10-year draw period, 10 or 15-year repayment period |
| *line of credit limit cannot exceed 50% of Fair Market Value
**Appraisal and title insurance may be required – costs vary by state. Loan amounts over $100,000 require title insurance and an appraisal. |
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