If you’ve owned your home for awhile, and haven’t taken cash out with a refinance, you may have a good deal of equity built up in your home. Some homeowners, as they get closer to retirement, look forward to paying off their mortgage and reducing their monthly expenses for when their income is reduced.
The equity in your home, however, can help you accomplish a variety of things that you may not be able to do any other way. By opening up a Home Equity Line of Credit (HELOC), you have access to money that can be used to remodel or to add on to your home, pay college tuition expenses, consolidate other higher interest rate debt, or even take a vacation. A HELOC considers a portion of the value of your home to be collateral for the credit line, and you can draw on the funds as you desire. The equity you’ve established is the difference between what your home would sell for and what you still owe on your mortgage.
“The HELOC offered by Home State is a great option for borrowers who don’t need a lump sum all at once. It allows them to use the money as they need it,” said Phil Semcken, Vice President and Banking Center Manager for Home State Bank. “The interest rate can be as low as a variable rate of Prime + 0.00%. Home State Bank’s HELOC program has a rate floor of 3.75% and restricts the APR from ever exceeding 18.00%, which is lower than most credit card maximums..” As of March 8, 2017, the APR (Annual Percentage Rate) is 3.75%. “We also waive the $50 annual fee for the first year,” added Semcken.
Home State Bank does not charge up-front fees or closing costs. Your HELOC can be accessed by simply writing a check for at least $500, and loan payments can be made by mail, online or at the bank. Consult your tax advisor regarding the deductibility of interest. For more information, please contact:
Phil Semcken, Vice President/Banking Center Manager
Home State Bank, N.A.
Phone: (815) 459-2000
NMLS # 1043312