Home Equity Loans & Lines of Credit

After you’ve lived in your home for a while, it can acquire equity because you’re paying down the loan’s principal each month. If your house has added value since you purchased it, a loan that uses its equity as collateral can help you make a big purchase you might’ve been putting off. Plus, the interest you pay may even be tax deductible!*

You can use Home Equity Loans to:

Remodel Your Kitchen

Add Accessibility Features

Take Your Dream Vacation

Pay for Wedding Expenses

Pay for College Expenses

Consolidate Other Loans or Debts

Heartland Bank and Trust offers two options to help you access your home’s equity:

Home Equity Loans

A home equity loan uses that “untapped” value as collateral, which means your interest rate is often lower than it would be on an unsecured or personal loan.

Generally, home equity loans are the second mortgage, but it can also be a first mortgage. One of the biggest advantages of a home equity loan is that the interest you pay is often tax deductible. Be sure to consult a tax advisor to find out if you’re eligible.

A home equity loan comes as one amount, and there’s a fixed monthly payment plan. Payments start right away and continue until the balance is paid in full. They come with competitive fixed interest rates, a variety of terms, and minimal closing costs, which all work together to make the loan more affordable than others.

Home Equity Line of Credit (HELOC)

A home equity line of credit (HELOC) is similar to a home equity loan in that the funds are available immediately. Instead of receiving the money as a single deposit into your account, the value of your loan lives as a line of approved credit you can draw from as expenses arise. You only pay interest when you use some of the line of credit, and as you pay back what you used, your line of credit “refills” until you have access to more funds again. You control a line of credit for borrowing against the equity in your home

This is probably easier to understand in an example.

Let’s say you establish a $15,000 home equity line of credit, and you write two checks from your HELOC for a total of $2,500. You’ll still have $12,500 available to use, and you’ll only pay interest on the $2,500 you “borrowed” by writing the check. It’s basically the bank saying we believe in you and your good money sense to manage a loan however you need it, when you need it.

HELOCs come with minimal closing costs and no annual fees, which makes them a great option for using your home’s equity.

Advantages of a Home Equity Line of Credit:

It’s a revolving line of credit that’s pre-approved for a maximum amount.
They can be used and repaid repeatedly.
Funds are available whenever you need them, without going through the loan approval process again.
You write checks on the account, which means you can easily pay vendors and service providers for what you need.
Digital Banking means you can set up automatic, regular payments on any amounts you draw against your HELOC.
People with a good credit history qualify for preferred rates. Need help building your credit score? Look into one of our Money Matters classes.
Interest only accumulates on whatever you borrow, not on the entire line of credit.
HELOCs enjoy a variable interest rate that’s lower than most other consumer loans.

Here to Meet Your Home Equity Needs

At Heartland Bank, we’re proud to offer:

Personal, professional, local service
An easy application process
Competitive rates
Flexible repayment terms
An automatic payment option

Apply for Heartland Bank’s Home Equity Loans or Lines of Credit, at any of our convenient locations, or contact us with any questions.

*Investment and Tax Notice: This information is not intended to be and should not be treated as legal advice or tax advice. Readers should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal or tax advice from their own counsel.

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