North Country Savings Bank offers both Home Equity Lines of Credit and Home Equity Loans to allow homeowners greater flexibility in how you borrow funds. We want to help you understand the differences between these loans before applying. Don't worry - our expert Loan Originators are here to help.
Already an expert on Home Equity and have determined which is right for you? Apply online today!
What is a Home Equity Line of Credit?
A Home Equity Line of Credit (or HELOC) is a revolving line of credit similar to a credit card, except the borrower uses their home as collateral. Borrowers are approved for a specific credit limit and can draw funds over a set period of time. This allows responsible borrowers to access funds as needed to cover costs for large-scale and ongoing projects.
Who should consider a Home Equity Line of Credit?
Home Equity Lines of Credit are designed for homeowners who need to cover the cost of projects such as a complete home remodel, or major expenses like buying a second home. Since this type of loan allows borrowers to access funds as needed, it is important the borrower uses discretion and only use what they can pay back once the credit line has ended.
Home Equity Line of Credit Rates & Features
North Country Savings Bank offers low-rate home equity lines of credit based on each individual customer's needs and unique financial history. Well-qualified members can borrow up to 80% of their home's equity over five years. Some benefits of Home Equity Lines of Credit include:
- Borrowing money now and paying back later at lower rates than other types of credit
- Interest can be tax deductible (check with your tax advisor)
- Adjustable Rates
- No Closing Cost programs available
What is a Home Equity Loan?
Home Equity Loans, also known as a second mortgage, allows homeowners to borrow a specific amount of money against the equity of their home. In other words, you can borrow money you've already paid on your mortgage and immediately begin paying it back in addition to your mortgage payment each month. These loans have fixed terms and payments and cannot be extended.
Who should consider a Home Equity Loan?
Home Equity Loans are ideal for homeowners who have a goal-focused project, like a roof replacement, or a fixed cost, like student's college tuition. Some homeowners also use Home Equity Loans to pay off high-interest debts, like credit cards. If you need a lump sum of money and feel you can easily pay a second mortgage payment each month, a Home Equity Loan could be best for you.
Home Equity Loan Rates & Features
Home Equity Loans at North Country Savings Bank have competitive rates based on each customer's needs and unique financial circumstances. Our Loan Originators take a close look at each applicant's credit score and overall financial history to determine how much can be borrowed. Some benefits of Home Equity Loans include:
- Borrow a lump sum of money with lower interest rates than other types of loans
- Interest could be tax deductible (check with your tax advisor)
- Fixed monthly payments over a set period of time
Still not sure which home equity option is right for you? Or are you ready to borrow? Contact us or visit our Canton, Potsdam, Massena or Ogdensburg locations to speak with an experienced Loan Originator.