Put Your Home Equity to Work for You


Horizon Bank has several solutions available offering individuals the opportunity to consolidate their debt, simplify their monthly bill paying, and, in most cases, save them money.

Our advisors may suggest a number of loan options to help our customers alleviate their debt problems. One option is a Home Equity Loan, also referred to as an “equity loan” or “second mortgage.” A Home Equity Loan – based on the difference between the homeowner’s equity and the home’s current market value – is a fixed loan amount available to help pay off your bills completely or, at least, pay off as much as possible. Most Home Equity Loans feature a fixed interest rate, which is typically substantially less than what you are currently paying on your credit cards, unsecured loans and or other finance company debts.

Another option is a Home Equity Line of Credit which is a form of revolving credit in which your home serves as collateral. Although the line of credit is not often used for debt consolidation purposes, there are some occasions where it would make sense. A discussion with an underwriter can help determine which product makes sense. Normally, this product is best suited for long-term flexibility of borrowing and repayment.

In most cases, the interest that you are paying on your Home Equity Loan or your Home Equity Line of Credit may be fully tax deductible. Check with your tax consultant to see how Home Equity Loan interest affects your return.

In the case where a homeowner does not have enough equity in their home, which may be caused by several factors such as a decrease in market value of their home or a first mortgage that is already at a high loan to value, our financial advisors may still be able to help with a debt consolidation solution. One option is a secured loan – a loan in which funds in a checking account, certificate of deposit, or savings account is held for collateral. Refinancing a vehicle owned free and clear would be a second option while another option could be to consider an unsecured loan which may be possible depending on the amount of debt needing to be consolidated.

Apply online or for more information on a Home Equity Loan, Lines Of Credit, or other debt consolidation products, visit a Horizon Bank branch near you, or call toll-free at (888) 873-2640.