Home Equity Loan

Similar to a HELOC loan, a Home Equity Loan allows you to borrow money using the equity in your home as collateral. Here are some of the features:

  • Lump Sum - a home equity loan is disbursed in one lump sum.
  • Fixed or Adjustable Rate - the interest rate you pay on a home equity loan can be either fixed (doesn’t adjust with the prime rate) or adjustable (adjusts with the prime).
  • Money for whatever - although many people use a home equity loan to pay for upgrades to their home, some use the money for college tuition, a vacation or to consolidate bills.

Land of Lincoln Credit Union offers both fixed and variable home equity loans:

Home Equity Line of Credit (HELOC Fixed)

  • Available on primary, single-family residences.
  • Advances can be made for up to five years.
  • As long as 10 years to repay.
  • Up to three draws allowed per quarter.

Home Equity Line of Credit (HELOC Variable)

  • Available on primary, single-family residences.
  • Offers a lower starting interest rate.
  • Advances can be made on s line of credit for a period of 83 months.
  • As long as 7 years to repay.
  • Variable rate is tied to the Wall Street Journal Prime Interest Rate.
  • A 2% annual adjustment cap.

DID YOU KNOW?...

If you use a HELOC to improve the home, you may be able to take a tax deduction on the interest for credit lines up to $1 million ($500,000 if married filing separately). If you use a HELOC for other purposes, you may be able to take a tax deduction on the interest for credit lines up to $100,000 ($50,000 if married filing separately). Be sure to talk to your tax advisor first to see if a HELOC is right for you!