If you have equity in your home and are looking for a way to access it, you may be looking at opening a 首页 Equity 信贷额度 (HELOC) or 首页 Equity Loan but wondering what the difference is between them and how to choose the right one for you.

Before we talk about the differences between a HELOC and 首页 Equity Loan, 我们必须讨论相似之处. 对于初学者来说, both types of loans use the equity you have earned in your home as collateral, usually making the interest rate lower compared to personal loans and credit cards. Equity is the difference between what you owe on your mortgage and the home's market value. 例如, 假设你花200美元买了房子,000美元，并在十年后还清, 你现在欠100美元,抵押贷款. Your home also increased in value over the ten years and is now worth $250,000. 然后你会有150美元,000 of equity in your home (your home’s current value of $250,000减去你欠的100美元,000).

什么是HELOC?

A HELOC (首页 Equity 信贷额度) is a revolving line with variable interest rates, 类似于信用卡. 因为heloc就像信用卡一样运作, 你想抽的时候可以抽, 以您的信用额度为限. Due to the credit line having a variable rate, your payments can change month-to-month. Once you pull funds from your HELOC, the funds you borrowed will start to incur interest. During the draw period of your loan (the time that you can borrow funds), 你只需要支付贷款的利息. 在最初阶段之后, you will enter the repayment period and be required to pay off the interest and principal balance; this will increase your payment.

A HELOC may be the right option for you if: you don’t know how much you want to borrow or want to have a credit line set up for emergencies with a lower rate than a credit card, and you don’t mind fluctuating payments or the potential of your rate increasing. A HELOC may not be the right option for you if: you want to know your exact payment month-to-month, 你容易超支, 或者你不喜欢汇率波动. Talk to a lending specialist to learn more about HELOC at Arbor. 

什么是房屋净值贷款?

通常称为二次抵押贷款, a 首页 Equity Loan is a fixed-rate loan that allows you to borrow a one-time lump sum. This type of loan provides you with a fixed payment and fixed interest rate, ensuring that your monthly payment will remain the same each month.

A 首页 Equity Loan may be the right option for you if: you have a specific cost in mind and want a predictable monthly payment. A 首页 Equity Loan may not be the right option for you if: you don’t know how much, 或者当, 你需要提取资金, and you’re worried about property values declining in your area. Talk to a mortgage specialist to learn more about 首页 Equity loan options at Arbor.