Put your home to work with a home equity loan.
Home improvements, bill consolidation, educational expenses... No
matter what you're paying for, a home equity loan can provide the
funds you need. Since your home is used as collateral, the interest
rate on a home equity loan is lower than for other types of loans.
Plus, the interest you pay may be tax deductible*.
Columbus Metro offers two types of home equity loans: our Redi-Line
home equity line of credit and fixed-rate home equity loans.
Redi-Line Home Equity Line of Credit
A HELOC is a revolving line of credit
for which your home serves as collateral. You'll be approved for a
specific amount of credit, or credit limit, which is the maximum
amount you may borrow at any one time. You access your credit line as
needed using our special Redi-Line Visa.
As you make payments towards the principal, those funds become
available for your use once again.
HELOCs are particularly convenient if your need for funds is ongoing.
For example, you may be paying for a child's college education or
making a variety of home improvements. Redi-Line allows you to borrow
just what you need, repay it, and then borrow again. With a Redi-Line
home equity line of credit, you can borrow
up to 80% of your home equity.
Fixed-Rate Home Equity Loans
A home equity loan is simply a closed-end or installment loan. In other
words, you borrow a specific amount and agree to pay it back over a
specified period of time. Home equity loans are usually used for a one-
time purpose such as purchasing a new car or consolidating bills. You
can borrow up to 80% of the equity in your home.
Calculating Your Home Equity
Home equity is simply the difference between the fair market value
(appraised value) of your home and your outstanding mortgage balance.
For example, if your home is worth $150,000 and you still owe $65,000
on your mortgage, you have $85,000 in equity.
Columbus Metro allows you to borrow up to 80% of your home equity, or
$55,000 in our example. The chart below demonstrates how we arrived
at this figure:
|
How Much Can I Borrow?
|
|
Value of Home
|
$150,000
|
|
80% of Appraised Value
|
$120,000
|
|
Less Mortgage Balance
|
$65,000
|
|
Potential Loan Amount/Credit Line
|
$55,000
|
If you have any questions or would like more information about Columbus
Metro's home equity loans or lines of credit, please stop in any of our
offices, call us at 614.239.0210 or 800.986.3876, or
email us today.
*Consult a tax advisor regarding the deductibility of interest. Columbus
Metro offers home equity loans to homeowners residing anywhere in the
state of Ohio.
NMLS # 787623
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