|
A Home Equity Loan (HEL) is a loan secured by the equity
in your home. Equity is determined by the market value of
your home (determined by a certified appraisal) minus what
is owed on the loan. A HEL is usually a closed-end mortgage
loan, which means that the amount you borrow is paid back
at a set rate and term. Your payment would be calculated so
that the amount owed (principal and interest) would be paid
in full at the end of the term.
A Home Equity Line of Credit (HELOC) is similar to a HEL
except that a HELOC allows you to borrow a certain amount
of money, pay it back, and then borrow it again (open-ended
loan). Typically, a HELOC has a variable rate of interest
and the period of time you can withdraw funds is limited.
The HELOC is similar to a credit card but usually with lower
rates and larger borrowing limits.
In general, any loan that secures a member's principal residence
will offer a lower rate than an unsecured personal loan
or credit card.
There are possible tax advantages that can be taken on the
interest paid. Please contact your tax advisor for details.
Since APGFCU will be securing the loan with your home, you
may be able to receive a larger loan amount compared to a
personal, unsecured loan.
Protect your family. A death or disability can turn a loan
balance into a financial burden for you and your family. Credit
insurance can lessen that burden. Click
here for more details.
|
