home equity loans
Equity-Based Loans Fit for You
Use the Equity in My Home
Compared to other personal loans, a home equity loan or line at Bell has many benefits:
- It's secured financing, so it may have a lower interest rate than an unsecured loan
- There's no prepayment penalty
- It may have tax benefits (talk to your tax advisor)
Home Equity Loan vs. Line: What’s the Difference?
A home equity loan and a home equity line are not the same; however, both are based on the equity you’ve built up in your home – the current market value minus the balance you still owe on your mortgage. The main difference between the two is that a home equity loan is taken as a lump-sum, one-time loan with a fixed interest rate, while a home equity line is a revolving “line of credit” that remains available to you for a specified time period, with an adjustable interest rate that is applied to the outstanding balance.
Home Equity Line vs. Home Equity Loan
Home Equity Line
Home Equity Loan
This option is great for you if you (1) want the money up front, (2) want to lock in a fixed rate, (3) prefer to pay off your loan in fixed payments, (4) need a specific amount for upcoming expenses.
Which One Should You Apply For?
Home Equity Line
Details
Home equity lines are used primarily as financial safety nets, or “rainy-day funds.” People just like you also use home equity lines for medical bills, wedding expenses, vacations and consolidating debt. How does it work? A home equity line is a revolving “line of credit” that remains available to you for a specified time period, with an adjustable interest rate that is applied to the outstanding balance. A line provides a set credit limit with a variable interest rate and gives you access to funds both now and into the future. Get convenient access to funds through your Bell Bank deposit account.
When applying, please be prepared to have the following ready:
- Personal financial information about you
- Verification of your income from employment and other sources
- Outstanding balance of your current mortgage
- Estimated value of your home
Home Equity Loan
Details
If you’ve been thinking about adding on to your house, remodeling or redecorating, using the equity in your home could make a lot of sense. Home equity loans can also be used for education payments, medical bills, wedding expenses, vacations and consolidating debt.
When applying, please be prepared to have the following ready:
- Personal financial information about you
- Verification of your income from employment and other sources
- Outstanding balance of your current mortgage
- Estimated value of your home