Tap into your home's value to access funds when you need it the most.
- Travel - Take that dream trip you've been eyeing. Whether that means a month sailing around the world or a month following your favorite sports team on the road, it's time to make that dream a reality.
- Home Remodel - Don't change your address, change the atmosphere. Home equity is a popular way to fund renovations and major home projects such as kitchens and pools.
- Major Life Events - You don't have to go into debt to fund your child's education or even their wedding. Major life events are the perfect use for your home's stored equity.
- Pay Off Higher Interest Debt - If you are carrying balances on student loans, credit cards or personal lines of credit, consolidating and paying them off could save you money and headaches in the long run.
Frequently Asked Questions (FAQs)
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Question
What is home equity?
AnswerHome equity is the difference between your home’s market value and the amount you owe on your mortgage. The more equity you have, the more financing options you may have available to you.
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Question
How do I calculate my home equity?
AnswerTo calculate your home equity, subtract the amount you owe on your mortgage from the appraised value of your home. As an example, if your home is valued at $1,000,000 and you owe $500,000 on your mortgage, you have $500,000 in equity. You can also use this calculator.
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Question
How much home equity can I borrow?
AnswerFactors such as credit history, monthly debt obligations and current equity may impact the total amount you can borrow, but well-qualified applicants may be able to borrow up to $700,000 for a HELOC and up to $1,000,000 for a home equity loan.
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Question
Which is the better option? A home equity line of credit or a home equity loan?
AnswerDetermining whether a home equity line of credit (HELOC) or a home equity loan is the better option for you depends on your needs and repayment goals. A HELOC provides ongoing access to funds with flexible repayment options. A home equity loan is an installment loan that provides a one-time disbursement of funds at a fixed rate. Before making a decision, be sure to compare the differences between a HELOC and home equity loan.
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Question
Is interest paid on a home equity loan or a home equity line of credit (HELOC) deductible?
AnswerIt depends.
For tax years 2018 through 2025, if home equity loans or lines of credit secured by your main home or second home are used to buy, build, or substantially improve the residence, interest you pay on the borrowed funds is classified as home acquisition debt and may be deductible interest on your taxes, subject to certain dollar limitations. However, interest on the same debt used to pay personal living expenses, such as credit card debts, is not deductible. Please be sure to consult your tax adviser regarding your tax deductibility.