Home Equity Loans & Lines of Credit

How Home Equity Loans Work

A home equity loan uses the equity in your home as collateral for the loan. Generally, these loans are the second mortgage on your residence, but can also be a first mortgage. One of the biggest advantages of a home equity loan is the possible tax deductibility of the interest paid on these loans. Be sure to consult a tax advisor regarding tax deductibility.

A home equity loan is given as one amount with a fixed monthly payment plan starting right away until the balance is paid in full. Your choice of competitive fixed interest rates and a variety of terms with minimal closing costs makes this loan affordable.

How Lines of Credit Work

A home equity line of credit is as easy as writing a check. The line is available whenever you need it, and you pay no interest until you use the line. Plus, as you pay back what you borrow, the money goes back to your line to be used again. By borrowing against the equity in your home, you create a line of credit that you control.

For example: If you establish a $15,000 home equity line of credit, you access these funds by simply writing a check. If you write checks for $2,500, you only pay interest on that amount. That means you still have $12,500 available to use. Pay down your line and use these funds again. Minimal closing costs and no annual fees make lines of credit a great option for using your home’s equity.

Advantages of a Home Equity Line of Credit:

• A revolving line of credit is approved for a maximum amount and can be used and repaid repeatedly.
• Funds are available whenever you need them without going through the loan approval process multiple times.
• Funds are accessed by check, giving you easy access to cash when needed. You don't need to contact the bank each time you want to make a draw against the line of credit.
• Make payments toward your line of credit using Digital Banking to save you time.
• Preferred rates for a good credit history.
• Interest assessed only on the outstanding balance, not on the entire line amount.
• A variable interest rate that is lower than most other consumer loans, so you save money.

Here to Meet Your Home Equity Needs

At Heartland Bank, you’ll experience:

• An easy application process
• Competitive rates
• Flexible repayment terms
• An automatic payment option
• Personal, simple, and local service

To learn more about Heartland Bank’s Home Equity Loans and Lines of Credit, visit any of our convenient locations today, or give us a call at 888-897-2276