Frequently Asked Questions
Home Equity
How do I determine my home’s equity?
Your home’s equity can be calculated by subtracting any outstanding mortgage balance(s) from the market value of the property. For example, if the appraised value of your home is $250,000 and the principal balance remaining on your mortgage is $150,000, then your home equity is $100,000. This is the portion of your home that you own.
How is a home equity line of credit different than a home equity loan?
There are a few key differences between a home equity loan and a line of credit, including:
- Interest rate—Home equity loans offer a fixed rate for the life of the loan or with a balloon payment dependent upon the loan term. Home equity lines of credit typically offer a variable interest rate option.
- Access to funds — A home equity loan provides you the money in an upfront lump sum and you repay over a defined period of time. On the other hand, a line of credit gives you ongoing access to your available credit. As you repay the balance during the draw period, those funds are made available for you to use again.
- Payment options — Most often, a home equity loan will have fixed payments for the entire term of the loan while a line of credit offers flexible payment options based on the current balance of the loan during the draw period.
How do I know if the interest on my EquityLine is tax deductible or not?
Interest you pay on a loan secured by your primary residence may be tax deductible. You should always consult an accountant or tax advisor to determine if this applies.
How much can I borrow?
Lenders usually will set a maximum loan-to-value (LTV) ratio limit for how much they will allow customers to borrow. In order to calculate how much, you must know these three things: your home’s value, all outstanding mortgages on the property and your lender’s maximum LTV limit. Simply multiply the home’s value by the LTV and then subtract the outstanding mortgage amount.
How do I know if I qualify?
You will need to complete an application that contains the following information:
- Name
- Property Address
- Photo ID (driver's license or passport)
- Employment and income information
- Current mortgage details
- Amount you wish to borrow
After we have reviewed your credit application in accordance with our normal credit approval processes, we will determine if you qualify for an EquityLine or EquityLoan.
When will I gain access to my home equity line of credit?
You should be able to access your EquityLine account normally within three business days after your closing.
What are my options when my EquityLine reaches end of draw?
There are several options available to you as you near the end of draw period on your EquityLine. For more information, please see Home Equity Line of Credit End of Draw Options >>
Normal credit approval applies. Certain restrictions may apply.
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