Home Equity Loans & Lines of Credit

Photo of author

By MarkPeters

Home Equity Loans & Lines of Credit

North Country Savings Bank offers Home Equity Lines of Credit as well as Home Equity Loans. This allows homeowners more flexibility when borrowing funds. Before you apply, we want to make sure that you fully understand the differences between the loans. Our Loan Originators can help you understand the differences between these loans.

What is a Home Equity Line of Credit and how can it help you?

A Home Equity Line of Credit, or HELOC, is a revolving credit line that works in the same way as a credit card but borrower uses their home to secure it. Borrowers can only borrow funds for a certain credit limit. Responsible borrowers can access funds when they are needed to pay for ongoing and large-scale projects.

Who should consider a Home Equity Line of Credit

Home Equity Lines of Credit can be used to finance major home renovations or other large-scale expenses such as buying a home. This type of loan allows borrowers to access funds when they need them. It is important that borrowers use discretion and only pay what they can repay once the credit line ends.

Rates and Features

North Country Savings Bank offers home equity credit at a low rate. It is tailored to each customer’s unique financial situation and needs. Members who are well qualified can borrow up to 80 percent of their home equity over five-years. Home Equity Lines of Credit offer several benefits:

  • Borrow money now and pay it back later at lower interest rates than other types credit
  • You can deduct interest from your taxes (consult your tax advisor).
  • Variable Rates
  • No Closing Cost programs available

What is a home equity loan?

Home equity loans, also known by a second mortgage or second mortgage, allow homeowners to borrow money to increase the equity in their home. You can borrow money that you have already paid on your mortgage, and then immediately start paying it back along with your monthly mortgage payment. These loans are not subject to extension and have fixed terms.

Who should consider a Home Equity loan?

Home equity loans are great for homeowners with a specific goal, such as a roof replacement or fixed costs, such as student tuition. These loans can also be used by homeowners to pay off high interest debts such as credit cards. A Home Equity Loan is a good option if you are in need of a large sum of money but feel that you can afford a second mortgage payment each monthly.

What is a home equity loan?

Home equity loans allow you to tap into the equity you have built up in your home. The money you borrow can be used for other than home-related costs. You can borrow the money to pay for college, a wedding, or a kitchen remodel.

A lender must provide you with important information when you apply for a home-equity loan. This includes the maximum amount you can borrow, the interest rates (including variable interest rates), and any fees. Common fees in your closing costs can include an origination/underwriting fee, appraisal fee, document prep fees, broker fees and application fees.

Home equity loans can be used to borrow a lump sum and have a fixed interest rate. Pay attention to the fees charged by the lender. These can vary from one lender to the next, so it is smart to shop around to find the best terms for you.

How can I repay my home equity loan?

You will be required to make monthly payments if you have a home equity loan. The repayment process is similar to a traditional mortgage. The principal amount borrowed and the interest you pay will be deducted from your loan payment.

Are home equity loans a good idea or a bad idea?

While home equity loans might not be the best option for everyone, it may be an option for certain situations. These are just a few.

You have enough equity in your house

The amount you can borrow will depend on how much equity you have in your home. Before you apply for a loan, make sure you have enough equity. Most lenders will only allow you to borrow up to 85% equity in your home. It’s important to take into account the equity you have. You’ll have more equity if you paid a higher down payment to buy your home.

You are eligible for a favorable rate of interest

When deciding how much and what interest rate to lend you, lenders consider more than your home equity. Your ability to repay the loan will be assessed by your lender. The lender can also base your interest rate on your income, credit history, and debt. You could pay less over the loan’s life if your interest rate is lower.

The increased monthly payments can be managed.

You’ll be able to repay more each month if you borrow more money. A home equity loan can help you reach your financial goals if you are able to handle the higher monthly payments.

A home equity loan is risky if you don’t know how you will manage the monthly payments. There is a possibility that your home could be foreclosed if you are unable to pay the higher monthly payments.

What other financing options are available?

There are many financing options available if you have extra cash.


You can also borrow against your home equity with Home Equity Lines of Credit (or HELOCs). However, they work in a different way. A HELOC is more like a credit card, but it does not allow you to borrow a large sum of money over a fixed period. A HELOC gives you a credit limit so that you can access the credit line whenever you need it. The amount you borrow will be the only thing that you pay, and not the amount you have been approved for.

  • HELOCs usually have a variable rate of interest that fluctuates according to an index such as the prime rate. This means that you might pay more if your rate rises.
  • You can still use your home as collateral for HELOCs, but you risk losing it if the monthly payments are not made on time and you default on the loan.
  • There may be a minimum withdrawal requirement or maximum withdrawal amount on your account. You might also have a draw period during which you can withdraw funds. After the draw period expires, you may be required to repay any outstanding debt immediately or over a time period.

Refinance with cash-out

A cash-out refinance might be an option if you are looking for another way of accessing the equity in your house. You will pay off your current mortgage by refinancing. Refinances can be done to obtain a lower rate loan, change from a variable interest rate to a fixed one, or to extend the mortgage.

You can refinance your house with a cash-out refinance if you have more than the loan amount. You can receive the difference as a lump sum.

Personal loan that is not secured

An unsecured personal loan is a loan that you can use to pay off your house. An unsecured loan allows you to borrow money without requiring collateral. These loans are more risky for lenders and come with higher interest rates.

Rates and Features

North Country Savings Bank offers competitive rates for Home Equity Loans. Rates are determined based on the customer’s unique financial situation and needs. To determine the amount of loan that can be borrowed, our Loan Originators carefully examine each applicant’s credit history and financial history. These loans offer several benefits:

  • You can borrow a lump sum of money at lower interest rates than other types loans
  • You may be able to deduct interest from your taxes (consult your tax advisor).
  • Fixed monthly payments for a fixed period

Related Articles: