Home Equity Line of Credit (HELOC) and Home Equity Loan

The major difference between the two products (also known as second mortgages) are:

  1. the loan is a one-time lump sum loan, and the line of credit is ‘revolving’ such that any principal you pay back is then available for you to borrow again.  
  2. the loan is typically a fixed rate, while HELOCs are typically variable rate,
  3. HELOCs more often than home loans, allow for interest-only smaller payments, with a large ‘balloon’ payment at the end.

One benefit of borrowing this way is that the interest paid on any home-secured loan is in most cases tax-deductible*.  Credit unions may offer the best rates available. Or contact your preferred institution to see if you qualify.

* Always contact a trusted tax professional to verify eligibility in your specific case.

The BANK of Edwardsville’s HELOC

  • $50,000+ available depending on creditworthyness
  • Minimum equity in home is needed to qualify
  • Competitive interest rates
  • Interest paid is typically tax-deductible

Questions About Solar?

We’d love to hear from you. Fill out the form below and one of our team members will contact you at the first opportunity.