#equity loan rates
Home Equity Loans
Is it time to build that addition on your house? Or how about a new kitchen? Maybe you re looking for the best way to finance a new car or consolidate debt. Perhaps it s time to send your child off to college. Whatever the reason, your home may provide the best way to borrow the funds you need for major expenditures with long-lasting benefits.
A Home Equity Loan from ESSA can offer you many financial advantages. Among the advantages are easy access to sizable amounts of cash, attractive interest rates, a long-term repayment schedule, and interest that may be tax deductible. In short, a Home Equity Loan offers you an easy – and often less expensive – way to borrow for the major necessities of life.
How it Works – Equity is simply the part of your home that you own outright – the difference between the current value of your property and the balance owed on your mortgage. For example, if your home is worth $225,000 and you still owe $135,000 on your mortgage, your equity would equal the difference – $90,000. An ESSA Home Equity Loan allows you to borrow using your equity as collateral.
The maximum amount you can borrow depends on the current value of your home and the balance of your mortgage. We also consider your income and any other debt you may have when determining your borrowing power.
The interest rate is fixed for the term of the loan so your payments will always be the same. Plus, the rate we quote at the time you apply is guaranteed for 30 days, even if rates go higher.
Consider the Tax Savings – Your mortgage interest is probably one of the largest deductions you can make to your taxes. But what effect will a Home Equity Loan have on your current deduction? That depends on the grand total of your residence-based debt. In most cases, you will be able to keep your mortgage interest deduction and deduct the interest on your new home equity loan as well.
A Home Equity Loan may be the answer to pay off your car loan, credit cards, or other installment debt and convert non-deductible interest into deductible interest expense. We recommend that you ask your professional tax adviser.