Which Flavor of Home Equity Loan is Right For You?

Lisa Cowgill Home Equity Loan Expert lcowgill@pccu.com NMLS# 1068812Planning for some home renovations this spring? Or maybe you need to replace your central air? Or perhaps you want to tap the equity you’ve built in your home to consolidate high interest debt? Whatever your reason, a home equity loan from PCCU is just what you need to get the job done! But which flavor of home equity loan is right for you, a closed end loan or a home equity line of credit (HELOC)?

With a closed end home equity loan you borrow a fixed amount of money for a fixed length of time at a fixed rate of interest. It’s perfect for a one and done project when you have a pretty good idea of how much you need to borrow to get it accomplished. It’s also good for people who prefer a fixed monthly payment that won’t change over the life of the loan.

A HELOC gives you more freedom. With minimum credit lines of $10,000 (max $50k), you can borrow the money you need in whatever increments you need them, repay the loan and reborrow again. All without having to go through a new loan application and appraisal process. You’ll have the buying power of your home’s equity at your fingertips for up to ten years. During that time you’re only ever required to pay the current interest due on the account; whatever balance is left at the end of that period is automatically amortized into a fifteen year mortgage. The price for this freedom? Interest on a HELOC is adjustable and tied to market rates, currently as low as 4.25% APR, but subject to increase when market rates go up again. It’s also only available currently to those who don’t have a mortgage on their home.

Which flavor is right for you? You can learn more here, or you can email or call Lisa Cowgill, your home equity loan expert at 765-489-4571, ext 245. She’ll listen to your plans and help you assess your needs, then help you decide which flavor of home equity loan works best for you!