What can you do with a home equity loan (aka second mortgage)?
Equity is the difference between the appraised value of your home and what you owe on your mortgage. Equity is the part of your home’s value that belongs to you… so you can borrow against it!
So, to answer the question: A home equity loan allows you to use the equity you have in your home for just about anything. You can pay off credit cards, remodel your house, consolidate debt… you get the idea! Plus, the interest may be tax-deductible*.
If you have a particular project or purchase in mind and know the amount you want to borrow against your home’s equity, this type of loan may be great for you. Here’s what you get with a home equity loan:
- A low rate and low payment
- Flexible length of loan terms
- No prepayment penalties
- Potential tax advantages*
It’s hard to know if a home equity loan is the route you should take. One of our lending experts is always willing to help you crunch some numbers and make the best decision. Just give us a call at (319) 892-7300.
See what the going rate is for a home equity loan at Linn Area Credit Union.
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