Which Loan is Right for You?
Home equity loans and home equity lines of credit both allow consumers to borrow against the appraised value of their homes. If you have enough equity in your home, you may be able to use part of that value to meet financial needs like home improvement projects or unexpected expenses.
|Home Equity Line of Credit (HELOC)||Home Equity Loan (Second Mortgage/Junior Mortgage)
|HOW IT WORKS||Established ahead of time and functions like a credit card with a limit based on a home's equity; Use the funds only when you need to and you can continue to use the funds as you repay the loan during the draw period||Functions like a conventional mortgage with a loan amount based on a home's equity; you borrow a specific amount|
|HOW YOU RECEIVE MONEY||Draw funds (up to your credit limit) as needed during the draw period||Receive a one up-front lump sum at closing|
|INTEREST RATE||Variable interest rate is tied to a benchmark interest rate (WSJ Prime) and can adjust up or down; pay interest only on the money you actually use; interest-only payments during the draw period||Fixed interest rate that doesn't change during the life of the loan; set monthly principal and interest payments throughout the life of the loan|
|BEST FOR||Those who need flexibility and have recurring expenses||Those who need a predictable monthly payment; ideal for non-recurring expenses/those who need a lump sum of money for a specific purpose|
Learn More About HELOC Loans and Rates
NOTE: Closed-end junior mortgage products are offered at 0.50% above the prevailing published first mortgage rate/terms.
All junior mortgage products have a maximum term of 20 years.
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Apply for a BofGB Home Loan by clicking the button below:
Rates, terms, and conditions are subject to change and may vary based on credit score qualifications and collateral conditions. All loans subject to approval.
Other restrictions and limitations may apply. Consult a loan officer for complete details.