Home Equity

Home Equity Line of Credit

Plan for your next big purchase without pinching pennies.

Planning for major expenditures can feel like an impossible undertaking when interest rates are increasing.

For many, refinancing your home may be your go-to solution to fund your next big project, but it can leave you with a higher monthly payment by increasing your principal or interest rate. Putting large purchases on a credit card isn’t typically a good choice either, especially if you plan to make payments over a number of months.

A 3-Year HELOC is a favorable option, as it allows you to take advantage of a fixed rate and draw on your line of credit as needed.
This short-term financial need can be a challenge depending on your family’s budget, but a HELOC may offer the resources you need with manageable monthly payments—without impacting your mortgage interest rate.

A home equity line of credit, more commonly called a HELOC or simply a line of credit, gives homeowners direct access to their home’s equity by borrowing against it.

What is equity?

Equity is calculated by first determining the value of a property the borrower currently owns. Then, any liabilities or debts secured by that property are added together to create a total sum of all liabilities. Finally, all debts are subtracted from the up-to-date market value of the property. The difference between the two is equity. So, if you own a home worth more than you currently owe, you have equity you may be able to put to use.
Because a HELOC is most frequently opened against a property already financed by the bank, the closing process is typically much faster and easier than a traditional loan process might otherwise be.

For some borrowers, depending on their payment history and credit score, opening an equity line can be accomplished without needing to make a trip to the bank. Talk with your loan officer before stopping by to make sure you are prepared with all necessary documents, and you could be breaking ground on your next home project sooner than you may have thought.

Still wondering if your planned expenditure can be covered by a home equity line? Check out how other First Bank & Trust customers have put their funds to use:

• Plan your dream wedding (or help pay for your child’s ceremony)
• Establish your own business
• Purchase a new vehicle
• Fund your latest hobby, including everything from horseback riding to woodworking
• Purchase an investment property
• Cover the cost of an elder parent’s care
• Gift a family member the down payment for their first home
• Pay for an advanced degree without an education loan

Apply Now

Secure your HELOC today! Get in touch with a local Mortgage Banker by filling out the form below.

*Lender agrees to pay (via reimbursement deposit to a new or existing First Bank & Trust deposit account) up to $500 in closing costs on borrower(s)' Prime Home Equity Line of Credit loan.  Should borrower(s) pay the loan in full or it closes due to non-renewal, borrower(s) will be responsible for reimbursing lender for closing costs minus interest paid over the life of the loan, however repayment shall never exceed $500. If interest paid over the life of the loan is equal to or exceeds the lesser of actual closing costs or $500, then borrower(s) will make no reimbursement to lender.  This reimbursement applies to NEW HELOCs only.  It will not be applicable on renewals.

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