Different types of borrowing can be confusing for families and homeowners at times, so we at Great Basin Federal Credit Union set out to help you make your home equity lending decisions as simple as possible.

What is Home Equity?

Home equity, also called real property value, can be explained as the difference between the home’s fair market value and remaining mortgage payments.

Think of it as Value of Home – Payments Left on Home = Home Equity.

A home equity loan can also be called a second mortgage, term loan, or equity loan. Home equity loans are used by homeowners to borrow funds for different kinds of expenses.

Benefits of Home Equity Loans

A home is a large investment, and many families do not have enough funds on hand to pay for other important expenses. Life happens, and at Great Basin we understand that your funds may be tied up in your home already.

Home equity loans allow you to borrow against the equity of your home to help pay for other important financial commitments from home repairs to funding your child’s college education.

Home Equity Loan Rates Explained

Home equity loan rates are usually determined by your credit score. The better your credit score is, the more favorable the interest rates you are offered will be.

To help you estimate what your home equity loan rates may be, you can contact one of our loan processors. If you need assistance on how to improve your credit score, we’d be happy to help you get started with that, too!

Home Equity Loan vs. Line of Credit

At Great Basin Federal Credit Union, we offer a fixed home equity loan with a fixed rate, loan amount, and term. With this home equity loan option, you can borrow from $5,000 to $75,000 for up to 120 months.

If you are looking for something larger or to make multiple purchases with, that is where the home equity line of credit can come in. With the home equity line of credit at Great Basin, you can borrow from $10,000 to $250,000 in the form of a revolving credit line. With this loan, you have a variable rate, but since it is a revolving line of credit, you can borrow and pay it down as you wish for a term of 10 years (at which point the loan may be re-evaluated and re-applied for).

Whether you need a smaller, short-term fix for your borrowing needs or a more long-term financial commitment, Great Basin has a home equity product that is right for you.

Great Basin Federal Credit Union Can Help

Not sure which you should choose? You can always stop by one of our branches and talk with our staff about what works for you. You can also learn more about home equity loan rates and how to work with your home equity loan rate.