As home prices rebound, opening a Home Equity Line of Credit, or HELOC, is a great way to have access to funds that have been accumulating as the equity in your home has increased. Your home’s equity is the difference between an independent appraisal evaluation and what you owe on the mortgage. A HELOC considers a portion of the home’s value to be collateral for the credit line, allowing homeowners to access funds as needed.
“HELOCs offer a variety of benefits to homeowners,” said Mark Schlagel, Banking Center Manager for Home State Bank. “Remodeling a home, consolidating debt, and establishing an emergency fund are very popular reasons our customers establish a HELOC with Home State Bank. The funds can also be used for college expenses and other large purchases, like a new car.”
Debt consolidation can be used to pay off higher interest loans, like student loans, car loans, and credit card debt. “The interest rate for a HELOC may be as low as the prime rate (currently 4.25%), whereas many credit cards charge up to 20 or 25% interest on unpaid balances,” added Schlagel. Interest paid on a HELOC may also be tax-deductible; ask your tax accountant for details.
A HELOC provides funds when you need them, but you’re not required to use them. Knowing the money is there in case you need a financial boost offers peace of mind. In the event of a job loss or a medical emergency, funds are available immediately.
At Home State Bank, new HELOCs applied for on or before September 15, 2017 will be awarded a $200 cash gift card within 60 days after a qualifying minimum draw of $10,000 on the account. The draw must occur within 60 days of closing. Standard underwriting criteria applies.
In addition, the $50 annual fee will be waived for the first year. For more information, please contact a Home State Bank Personal Banking Counselor at (815) 459-2000.
Home State Bank, N.A.
Phone: (815) 459-2000