11/16/2022: Home Equity Loans
With interest rates on the rise, nothing is worse than not knowing what your next month’s payment will be. That’s why State Bank has made it easier than ever to get the loan you want for home repairs or improvement with a monthly payment that won’t increase over the life of the loan. Lock in a great rate today with State Bank!
Lock in a Home Equity Loan before the rates go up! Visit StateBank1910.bank/HomeLoans to check current rates, use online calculators, apply for a loan, or to learn more today.
Benefits of a State Bank fixed-rate Home Equity Loan:
- Great rates
- Peace of mind
- Fixed payments
- Debt consolidation
- No penalty for early payoff, No document fees, No appraisal fees, & No annual fees
What’s a Home Equity Loan Good For?
A home equity loan has many uses. Popular uses for a home equity loan include home improvements, debt consolidation, weddings or celebrations, and education.
Whether you need to make significant repairs or want to make upgrades, a home equity loan is a good option for one-time remodeling projects. The improvements add value to your house as you reinvest the money into the property.
You can use a home equity loan to consolidate the debt into one manageable payment. This is a good option when juggling multiple debts becomes burdensome. One competitive rate can also help with your debt management plan.
Weddings or Celebrations
Consider a home equity loan if you don’t want to cover a significant expense from your savings. This can be an affordable way to stick to a predetermined budget to pay a large expense.
Grants and student loans may not be enough or may not even be an option. However, a home equity loan is a viable solution to pay for higher education for yourself or a family member.
How Does a Home Equity Loan Work?
A home equity loan, also known as a second mortgage, allows you to borrow against the equity in your home, which is based on an appraisal by the bank. You will be issued the funds in a single payment and repay these funds on a fixed schedule.
Repayment terms may range from 5-30 years. Since home equity loans are fixed-rate loans, you have the benefit of knowing exactly how much your interest rate and payments are each month during the loan. Interest paid can sometimes be tax deductible.
How Does a Home Equity Loan Differ From a Home Equity Line of Credit?
A Home Equity Line of Credit (HELOC) shares similarities with home equity loans. When determining whether a HELOC vs. home equity loan is better suited for your situation, there are a few factors to consider. Both offer competitive interest rates and use your home as collateral.
However, there are a few key differences. The home equity loan offers funds as a lump sum at a fixed rate and has a repayment plan schedule, while the home equity line of credit is offered as a line of credit. You will be approved to draw up to a specific amount from your HELOC over a period of time. Interest is variable instead of fixed. You will pay interest-only payments during the draw period while paying principal and interest during the repayment period.
Home Equity Line of Credit**
With our great rate special, it’s time to put the equity in your house to work for you!
Whether you’re looking to make a few home improvements, consolidate debt, take a vacation, or even make a college tuition payment, using the equity in your home may be the perfect solution to your cash flow needs. State Bank can help with a competitive rate and NO closing costs.
Stop by and let us answer your questions, review your needs, explain your options, and even walk you through the loan application process. Plus, every loan is backed by a level of personal service the big banks don’t provide.
Ready to apply today? Call us at 866.348.4674 or apply online through our Secure Loan Application.
Is a home equity loan a mortgage?
A home equity loan is called a second mortgage because they have many similarities. A home equity loan offers a fixed rate and a set repayment schedule. While a standard mortgage allows you to purchase your home initially, you can take out a home equity loan once you have enough equity in your home.
Can you get a home equity loan with bad credit?
In addition to having sufficient equity in your home, you will typically need a credit score that ranges from good to excellent to qualify for a home equity loan.
Can I use a home equity loan to buy another house?
You can use the funds from a home equity loan to buy another house if you have enough equity. However, there are always benefits and risks to be considered with any significant financial decision. Therefore, you should weigh these factors before using your equity to purchase another home.
How do I qualify for a home equity loan?
If you have good credit and enough equity in your home that does not exceed the loan-to-value ratio, you may qualify for a home equity loan with State Bank.
Discuss Home Equity Loans with State Bank
State Bank has provided superior financial services to Indiana for over 100 years. You can contact us today to learn about our home equity loans or stop by one of our convenient locations to discuss your options. We’re here for you.
*Disclosure and additional information can be found here.
** Disclosure and additional information can be found here.