Home Equity Loans

Borrow against the money you've invested in your home over the years with a home equity loan.

For most people, their home is their biggest asset. Did you know it could also be your most strategic asset, too?

Home equity loans and lines of credit through TFNB Your Bank For Life use your home as collateral. They’re sometimes called second mortgages.

Take advantage of your home’s value. Talk to a lending professional today about our home equity lending solutions.

Why choose a home equity loan?

Home equity loans have advantages over personal loans, lines of credit, and other lending solutions.

Benefits include:

Low interest rates
Using your home as collateral helps you get a lower interest rate when compared to personal loans or credit cards.
Fixed interest rates
Lock in your interest rate with a secured home equity loan. Even if interest rates go up in the future, your loan won’t change.
Substantial sums
Home equity loans often let you borrow more than other lending options. Use the funds to pay for things like large medical expenses, home renovations, or debt refinancing. These loans usually offer lump sums in the thousands of dollars. Your specific approved amount will depend on the value of your home and its current liens.
Possible tax deduction
You might be able to write off home renovation or repair expenses when you finance them with a home equity loan. A TFNB banker or a tax professional can help you determine if this tax advantage applies to you.

What is my home’s equity?

To calculate your current home equity:

Subtract how much you still owe on any home liens (usually your mortgage) from the current appraised value of your home..

The current appraised value of the home.
— The remaining balance on your mortgage.

= Your Current Home Equity

How does a home equity loan work?

Get financing secured by your home’s equity in a lump sum loan or line of credit. Generally, home equity loans have terms that range from five to 15 years.

As with other lending solutions, applying for a home equity loan requires a credit check. The higher your credit score, the easier it is to qualify for a more favorable loan. Also, an appraiser will estimate the current market value of your home.

As with your home’s first mortgage, you start paying off a home equity loan every month. You must repay the loaned amount in full by the end of the loan’s term. If you sell the home before you’ve paid off the home equity loan, you must pay the remaining balance at closing.