What is a Home Equity Loan?
A Home Equity loan allows you to borrow against the equity in your home. The loan amount is based on the difference between the home’s current assessed market value and any liens, such as the amount you owe on your mortgage. Home Equity Loans are often referred to as a Second Mortgage.
What can the money from a Home Equity Loan be used for?
The money you receive from a home equity loan can be used for almost anything!
- Home improvements
- Debt consolidation
- Wedding expenses
- Vacation
What are the benefits of a Home Equity Loan?
- Low closing costs
- Fixed interest rate
- Interest paid on the loan is generally tax-deductible*
- No penalty for early payoff
- Borrow up to 90% of the equity you have in your home ($10,000 minimum)
- Generally offered at a much better interest rate when compared to a personal loan, credit cards, and other unsecured loans.
*Be sure to check with your tax professional. Home Equity Loans are only available from homes located in Iowa.
