Home Equity Lines of Credit versus Home Equity Loans.
Which one is right for you?
Both Home Equity Lines of Credit and Home Equity Loans let you tap into the equity in your home.
Home equity lines of credit are open credit lines you can draw on as needed, up to a preset credit limit. As you pay off what you owe, you replenish your credit line up to your credit limit. A home equity line of credit offers:
- Flexibility—Borrow as much as you need, when you need it, up to your available line. And, once funds are repaid, you can borrow them again.
- Competitive rates—A FAIRWINDS Home Equity Line of Credit has rates tied to Prime Rate. That means that as Prime Rate varies, so will your loan rate.
- Convenient access—you can access your line of credit online, at any service center or with our Visa home equity credit card.
Home equity loans are for a lump sum you borrow at a fixed rate. You must repay the loan within a set period, which might range from five years to 30 years. A Home Equity Loan offers:
- Fixed payments— Since you borrow a fixed amount to be paid back over a certain amount of time, you'll know exactly what you'll be paying each month. This makes it easier to create a budget and stick to it.
- Fixed interest rate—You'll be locked into an interest rate over the life of your loan. If you expect rates to increase, this could save you money.
Still not sure which one is right for you?
A Home Equity Line of Credit or a Home Equity Loan from FAIRWINDS are both excellent solutions for your home improvement, college funding or debt consolidation needs. Our equity calculator can help you determine monthly payments and more.
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