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Home Equity Loan

A home equity loan (term loan) is one large sum that is paid off over a period of time.  Rates and payments remain constant (fixed rate), and once the loan is closed you can no longer borrow from that loan.  A home equity loan typically has a lower rate than a HELOC and is used for debt consolidation and other single-purpose purchases.  125% home equity loans allow you to take out a loan for a value greater than that of your home.

A home equity line of credit works like a credit card.  A borrower can only borrow up to a certain amount over the life of the loan.  Just like a credit card when you pay off the principal your credit revolves and you can use it again.  Monthly payments will vary depending on the current balance and interest rate (non-fixed – variable interest).  When the loan reaches maturity, everything must be paid off.  An initial advance is often required when the loan is set up, and a minimum amount each time you withdraw.

To choose what loan is best for you, contact Mortgage Rates NY to speak to one of our Loan Officers today at 1 (888) 996-9529