Tapping into your home’s value: Home Equity 101
Life is full of choices and opportunities, and if one thing is constant, it is always changing. As your life changes, so will your financial needs. Whether you want to build an addition onto your home or renovate a space to fit your growing family, send a child off to college, or plan a long-awaited vacation, you have likely spent a lot of time considering your options and ways to pay for them.
If you are a homeowner, one option may be through your home’s equity.
By now, you’ve probably heard of home equity. But what is it and how can you use it? It’s simple; you have been consistently paying into your home’s value with your monthly mortgage payments. Your home’s equity is the difference between the value of your home and the remaining balance of your initial loan. As you continue to make payments on your mortgage (or your property value increases), your home’s equity increases. You can then use the value of your home as an asset to open a line of credit or take out a loan.
Mid Penn Bank makes it easy to tap into the value of your home and help you reach your goals. We are pleased to offer highly competitive home equity loan rates and lines of credit to homeowners throughout Central Pennsylvania.
Home Equity Loan
By using the equity you’ve built in your primary residence, a fixed-rate Home Equity Loan is a great way to borrow money to pay for projects or costs (especially ones where the exact price is known). For example, you are fixing up your home and have been quoted by contractors on the cost of the renovation, or you are helping to pay for your child’s college education and you know the tuition and other costs associated. Home equity loans can be a cost-effective option to cover large expenses, such as:
- Making home improvements
- Consolidating your debt
- Funding an important purchase
- College tuition
- Medical bills
Home Equity Line of Credit
A Home Equity Line of Credit (HELOC) is specifically designed to serve the needs of qualified home owners as an alternative to traditional loans. With a line of credit, you can pay down what you owe and continue borrowing against the account up to your credit limit.
Use your line of credit to pay for larger expenses or ongoing expenses such as college costs. A line of credit also doesn’t have to be used right away. You can take out a line of credit now and keep it open for emergencies or future purchases.
- Access funds easily by writing a check or transferring the money online
- Use for large expenses (home improvements, education, vacations, etc.)
- Use the money now or later (be prepared for an unexpected expense)
Everyone’s needs and situations are different. To learn more, call us at 1-866-642-7736 or stop into your nearest Mid Penn Bank branch to discuss your options.
Consult a tax advisor | Loans are subject to credit approval