Home equity loan vs. line of credit?
Here's what you need to know.
The equity in your home can be a valuable resource for your financing needs. There are two different ways to leverage that equity. Compare your options.
Home Equity Loan
Home Equity Line of Credit
|WHAT IS IT?||A Home Equity Loan is a fixed-term loan in which your home serves as collateral.||A Home Equity Line of Credit is a form of revolving credit in which your home serves as collateral.|
|WHY CHOOSE?||For predictable repayments on major expenses such as a home addition, dream vacation, even debt consolidation, a fixed-rate, fixed-term loan is a good choice.||For long-term flexibility in borrowing and repayment, try a line of credit. Whether working little by little on home improvements or paying college tuition bills, you can choose when and how much to borrow.|
|INTEREST RATES||Competitive rates tied to the length of your loan term - minus 0.25% with auto debit from a Horizon Bank checking account with eStatement.||Variable rates - as low as Prime minus 0.25% with auto debit from a Horizon Bank checking account with eStatement.|
|PAYMENTS||Fixed monthly payments for the term of the loan.||Variable monthly payments based upon how much of the line you use.|
|ACCESS TO FUNDS||Entire amount given to you in a lump sum when you get your loan.||Access funds as you need them using your line of credit checks or a local Horizon office.|
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