BankSouth has been helping Georgia homeowners get the most out of their homes for over 75 years, so we know a thing or two about how to help you convert your hard-earned equity from your home to multiply the benefit. Let us work with you to identify your home equity options.
What is a Home Equity Line of Credit (HELOC) or Loan?
Home equity exists when the value of your home exceeds the amount you owe your mortgage lender. Your home’s equity could be the answer to a large purchase, remodeling project, or debt consolidation in the form of a line of credit or loan.
A HELOC is a revolving line of credit that allows you to access the funds as needed, pay down the balance on flexible terms, and repeat — much like a credit card. A home equity loan is paid out in one lump sum and repaid in fixed monthly installments over a set period of months.
With the rising home values in Georgia and your mortgage principal reducing, your equity is growing. Let us identify your home equity options.
Works like revolving credit
A home equity line of credit, or HELOC, is credit that is revolving and secured by your home’s equity. Once approved for a set spending limit, you are able to spend as much or as little of that amount as needed. Payment terms are flexible and when you pay down on the balance, you are able to use your available credit again and again — the same way you would use a credit card.
For information on the current rates for home equity lines of credit, contact our team.
Fulfilled in one lump sum
Like a HELOC, a home equity loan is secured by your home’s equity. How a line of credit differs from a loan is how it is paid to the homeowner. A home equity loan is paid in one sum to the homeowner, which is repaid in fixed monthly installments back to the lender.
To discuss your options and rates for home equity loans, get in touch.
How can I use my HELOC or loan?
Whether you plan to pay off credit card debt, remodel a room or make a large purchase, we have the solution right under your roof.
Any time is a good time to take advantage of the equity you’ve earned in your home to pay for your next major home renovation, consolidate debt, take a trip, and more.
Should I get a line of credit or a loan?
The largest difference between a home equity line of credit and a home equity loan is in how the credit is issued. A HELOC is a revolving credit line that you use as needed — you only pay back what you borrow plus interest. A home equity loan is paid in one lump sum to the borrower. Payments are a fixed amount for a set number of months.
A HELOC is a credit line that you use as needed. In addition it offers flexible payment terms, and you’re able to use the credit after the balance is paid down.
A home equity loan is issued to borrowers in one lump sum, has fixed payments and terms, and more credit is not issued as you pay down the loan balance.
Credit and collateral are subject to approval. Terms and conditions apply.
