What is a Home Equity Loan?

You have two options with home equity loans. You can either receive the loan as a lump sum, which means you take a large amount of cash right away and repay the loan over time. The second option is a line of credit, where you get approved for a maximum amount and only borrow what you need. A home equity loan is based on your home’s equity. Essentially, it allows you to borrow against your home’s value, which is why you receive access to the cash sooner.

Home equity loans can be easier to qualify for than other types of loans because your home’s value secures them. If what you owe on your home is less than your home’s worth, a home equity loan provides the funds you need for substantial purchases.

A home equity loan is different than a mortgage. When you are preparing to buy your house, you apply for a mortgage. After you purchase your house and it has built up equity, you can use additional loans to borrow against the property.

Second Mortgage vs. Home Equity Loan

A second mortgage is similar to your original mortgage because it has a fixed interest rate and a number of years to pay it back. A second mortgage is used to add to your home, buy a second home, or make a significant purchase for your home.

A home equity loan is like a line of credit. Usually, you can withdraw money out of your home whenever you need it. This type of loan is flexible because you can use it for almost anything and have access to the loan whenever you need.

DEXSTA | Loans for You

We have a couple of loans for you to choose from to help accomplish your goals. We have home equity loan options that allow you to borrow from 80 to 100 percent of the equity value of your home with low fixed interest rates. Our Platinum Home Equity Line will enable you to treat a home equity loan as a line of credit.

This loan comes with a credit card so can access your funds. We also understand that sometimes you want to use your loan for home improvement. We have a loan specifically for that, with no equity needed, and with a fixed term.

DEXSTA also has mortgages to help you buy the house of your dreams. View today’s mortgage rates. You can apply online or contact one of our Mortgage Loan Officers to help you.