Home Equity Loan

Home equity is the difference between any current mortgage balance(s) you have on your home and its current market value. Depending on your situation, you may be able to borrow up to 80% of your home's current value. 
 
There are two types of loans you can secure with the equity within your home. 
Home Equity Loan and a Home Equity Line of Credit. 
 

A home equity loan is a short-term loan where you borrow against your home’s equity to meet a financial need. It could be used for any number of expenses such as education, home remodeling, medical bills, and debt consolidation.
They are similar, but not the same. With a home equity loan, you borrow a fixed amount of money and use your house as collateral to secure the loan. A home equity loan typically has repayment terms of 5 to 15 years.

With a Home Equity Line of Credit (HELOC) you can secure a revolving line of credit, using your home as collateral. You can tap into a HELOC as needed, up to your line of credit, and pay off the loan in monthly installments. You can use this money for any number of expenses, such as home remodeling or paying off credit cards.

You can draw on these funds as needed throughout your HELOC’s draw period, which is typically 10 years, with a repayment period of up to 20 years.

Both home equity loans and HELOCs typically have a lower interest rate than many other types of loans. The IRS says (Opens in a new Window) the interest payments on both equity loans and HELOCs are tax-deductible “if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan” and meet other requirements.
If you need to borrow against your home’s equity, our lending pros can assist you through the process - OR - you can apply online. 

Visit any one of our 10 Union Bank branches in West Central Arkansas and the River Valley: Mena, Paris, Wickes, Hatfield, Caulksville, Clarksville, Ozark, Waldron, Booneville, and Russellville.