Making Cents: Home Equity Loans

A home equity line of credit, or HELOC, can be a quick and convenient way to access funds for your next home improvement project or major life expense.  

Like a credit card, a HELOC is a form of revolving credit that turns your home into cash. 
It gives you the flexibility to access funds and use them when needed over a period of time, usually 5 to 10 years, known as the draw period.

Once the draw period is up, monthly payments are made to repay the loan during a repayment period, which is typically 20 years.

The interest rate on a HELOC is variable and fluctuates based on your balance and the prime rate. 

Most lenders let you borrow up to 80 percent of your home’s value; at Ascentra, you may borrow up to 100 percent. 

Unlike other loans, the interest on a HELOC of $100,000 or less is likely to be tax-deductible, and generally has a lower interest rate.

While credit buys you more flexibility, it’s important to spend within your means.
Head to ascentra.org/mortgage and see if a HELOC can help you with the kitchen remodel you’ve always wanted.  Remember, it’s on the house!