Connexus Blog

Everything You Need to Know About Home Equity Products

Financial products can be confusing — like, really confusing. And if you don’t fully understand what they are, why would you ever apply for it? Home equity products, for example, can seem confusing at first (what the heck is a HELOC?). Don't worry, we’re here to help.

Your home is likely your most valuable asset, and there is a lot of equity built up in your home. Our home equity products allow you to take that equity built up in your home and use it as collateral to borrow funds for large expenses. For example, if you have costly vehicle repairs, upcoming home renovations, debt consolidation plans, medical expenses, etc., you can get money to pay for those expenses by opening one of our home equity products.

 

Types of Home Equity Products

Everyone has a different situation. You may need money over time, or you may need it immediately. We offer several solutions that will help you out in any situation.

 

Home Equity Line of Credit (HELOC)
Overview: Borrow funds as you need them up to your line of credit
Payment Amount: Variable
Monthly Payment: Principal and interest based on available credit limit
Helpful If: You need funds over time (ongoing medical expenses, home renovations, large purchases)

 

Interest-Only HELOC
Overview: Borrow funds as you need them up to you credit limit
Payment Amount: Variable
Monthly Payment: Interest-only based on your loan balance
Helpful If: You need funds over time (ongoing medical expenses, home renovations, large purchases)

 

Home Equity Loan
Overview: Borrow up to 90% of home’s equity and receive the entire loan proceeds at signing
Payment Amount: Fixed
Monthly Payment: Principal and interest
Helpful If: You need a specific, immediate amount (buying a car, home renovation, debt consolidation)

 

5/1 Adjustable-Rate Mortgage (ARM)
Overview: Borrow up to 90% of home’s equity at an affordable rate
Payment Amount: Fixed for 60 months then adjusts annually for the remainder of the loan
Monthly Payment: Principal and interest
Helpful If: You need a specific, immediate amount (buying a car, home renovation, debt consolidation)

 

How to Apply

Applying for our home equity products is really easy. You can do it online, over the phone, or at one of our branches. If you have any questions about these products or just want to learn more about whether or not they could help you, visit our home equity page or call us at 800.845.5025.

 

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