While all home equity loans share certain traits – like using the equity in your home as collateral – certain types are better for certain situations. Here's a rundown of some of the major home equity loans Veridian offers and what they're best at.
Borrow up to 100% of the equity in your home with a fixed rate at terms of 5, 10, 15 or 20 years. This loan is a great option when you need one larger lump sum to cover a cost, such as replacing the roof on your home, paying for medical expenses or debt consolidation.
Usually called a HELOC, this open-end revolving line of credit allows you to borrow up to 100% of the equity in your home. The term is 25 years, with the rate fixed for the first 5 or 10. This is a great choice when you don’t know exactly how much money you’ll need; it works similar to a credit card, so you borrow as you go and only pay interest on your balance.
Use the equity in your home to refinance and get a low fixed rate for 10 years. It's like getting a 10-year fixed-rate mortgage with a fraction of the closing costs and less paperwork and fees than a typical refinance. You'll know exactly how much you'll pay, and when you'll pay it off.