Central Bank of St. Louis
There are two options available to access your home’s equity and depending on your needs, one may work better than the other. It’s important that you understand how both options, a Home Equity Line of Credit (HELOC) or a Home Equity Loan) work before deciding which option is best for you.
A Home Equity Line of Credit (HELOC) is an open line, available for use at any time, present or future. The many benefits of a HELOC include:
A Home Equity Loan, also known as a closed-end second mortgage, is a solution to get cash for a one-time need and specific loan amount, e.g., remodeling your kitchen and paying off the loan in a five-year period. The many benefits of a home equity loan include:
Equal Housing Lender. Member FDIC.
*Consult a tax advisor regarding the deductibility of interest