What is Home Equity?
Home equity is the portion of your home that you own, and it can be calculated as follows:
Home Equity = Appraised Home Value – Amount Owed (Mortgage Balance)
For example, if your home appraises for $400,000 and you currently owe $150,000 on your mortgage, your home’s equity would be $250,000. You can borrow a portion of these funds through a Home Equity Line of Credit (HELOC).
How Does a HELOC Work?
When you apply for a HELOC, you will receive a borrowing limit, for example, $40,000. You can then draw on this line of credit as needed, providing ultimate flexibility.
You DO NOT have to withdraw all the funds at once. Once you repay what you borrow, you can draw from the credit line again – similar to a credit card. This feature makes a HELOC such a powerful financial tool.
Whenever you need money, whether for home repairs or unexpected medical bills, you have immediate access to low-cost funds.
How Can I Use a HELOC?
People often assume HELOCs can only be used for home-related expenses, but the possibilities are endless! Since terms extend up to 15 years and you only pay interest on the money you withdraw, you have a long-term, affordable financial lifeline available for anything.
- Events (e.g., weddings, dream vacations)
questions?
If you have questions about Home Equity Lines of Credit or want to know how much equity you can access in your property, we’re ready to help! Please stop by any branch location or call (813) 643-5572 to speak with a team member today.
*Must take an initial advance of $10,000.00 in new money within 60 days of opening a new loan and must maintain a balance of $10,000.00 for 12 months from the date the loan was opened.
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