Understanding Your Home Equity Loan Options

  • Home Improvement
  • Home Equity
Apr 13, 2021
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Are you a homeowner looking to do some renovations or spruce up your property? Or perhaps you’re looking to help pay for education or wedding expenses, buy a car, or consolidate debt? A home equity loan might be the best fit to provide you with affordable, low-rate financing of life’s major purchases.

There are several home equity loan options to choose from, so it’s important to understand the benefits of each one to help you make the best financing decision. But first, what is “equity?” Equity is the difference between what your home is worth and what you currently owe on your mortgage and any other loans against your home. For example, if your home is valued at $200,000 and you owe $100,000 on your mortgage, you have approximately $100,000 in home equity available to you.

Let’s review the different types of home equity loans available to you.

Fixed Home Equity Loan
If you’re looking for a loan that provides structure, affordability and simplicity, a Fixed Home Equity Loan is the right choice for you. This loan type is the ideal fit if you know the total amount of money you need and want to receive the money upfront in a lump sum. You’ll be able to easily budget for your loan thanks to a fixed monthly payment and competitive rate, saving you worry down the road if unexpected life changes were to occur. Plus, there are no hidden gimmicks or added costs with a Fixed Home Equity Loan from Dutch Point, saving you money and giving you piece of mind that your money will be put to its best use.

Home Equity Line of Credit
A Home Equity Line of Credit (also known as a HELOC) is the best choice if you’re looking for spending flexibility. Take comfort knowing you only have to borrow exactly what you need at the time when you need it most. Save money by only paying on the loan when you use it, and gain spending power by paying off your outstanding balance at any time, opening up the line of credit to additional uses down the road. You’ll also be able to enjoy more flexible repayment options that work well with your budget. Choose to pay just the interest you owe each month, or pay towards both interest and your outstanding balance – the choice is yours. 

First Lien Position Home Equity Products
Are you looking to refinance your mortgage for a shorter term and lower cost? Or have you already paid off your home and are looking to save extra money on upcoming projects? Dutch Point’s unique first lien home equity products can provide you with the most bang for your buck and leverage your equity to its fullest potential.  Both our fixed and line of credit home equity loans have first lien position options, which offer you the same benefits described above as well as discounted loan rates

 
No matter which loan option you choose, rest easy knowing our local, in-house home equity consultants will provide you with quick loan decisions and easy access when you have questions. Plus, all of our home equity loans are retained at the credit union, meaning all of your servicing stays local. Feel confident knowing you have access to someone nearby you can trust who has your best interests in mind.

When you're ready to apply for your home equity loan with Dutch Point Credit Union, complete our simple and fast online application, give us a call, or visit one of our Wethersfield, Newington, Berlin, Bloomfield, West Hartford, Niantic, or Middletown, CT locations.

 

At Dutch Point, it's all about you. We empower you to make financial decisions that are right for you. We pledge to help you meet and exceed your financial goals through all the stages of your life.