There are benefits and trade-offs to all loans, especially when it comes to paying off major expenses. 这两种房屋净值选择都允许您根据房屋的评估价值借款, providing you with cash when you need it. Here are some of the differences:
Home Equity Loan
A home equity loan is more like your original home mortgage. 你借一笔特定的钱,然后在固定的还款期限内定期还款. 您申请所需的金额,并以一次性一次性支付的方式提前收到这笔钱. 在贷款期间,利率是固定的,所以你的还款额永远不会改变.
Home Equity Line of Credit
Unlike a conventional loan, 房屋净值信用额度是你提前建立并在需要时使用的东西. 在这方面,它类似于信用卡,除了HELOC,你的房子被用作抵押品. You can access as much or a little as you need from your HELOC, whenever you need it, up to the credit limit established at closing. HELOC为您提供了以房屋净值为抵押借款、偿还和重复的灵活性. 利率是可变的,通常低于房屋净值贷款.
Use the chart below to determine which is better for your needs. As always, 您在Elements的支持团队随时准备帮助您找到最适合您的产品,请致电我们 1-317-542-5055.
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Home Equity Loan |
Home Equity Line of Credit |
What It Is
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Borrow funds using the equity in your home
Loan for a set amount |
Borrow funds using the equity in your home
Revolving credit line for the 10-year draw—use, repay, repeat |
Key Benefits
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Fixed monthly payments |
Lowest interest rate |
APR
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10-year fixed: 8.514%
15-year fixed: 8.717% |
Intro APR for 6 months: 4.99%1
Variable APR after 6-month intro period: As low as 8.00% |
A Good Option for a Major or Unexpected Purchase If You
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Own your home
Want money upfront in a lump sum single payout
Want a locked-in fixed interest rate
Want predictable monthly payments that stay the same |
Own your home
Want the flexibility of using funds whenever you need them
Want a lower payment |
Can Use It For
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Best for purchases such as:
- Planned home improvement projects - College - A second home - Debt consolidation |
Anything! Purchases such as:
- Unexpected emergencies - Home improvements - College - That big vacation - A new car - A second home - Debt Consolidation |
No Prepayment Penalties
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No Annual Fee
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Available Amounts
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Whatever your available equity is in your home |
Whatever your available equity is in your home |