The most common type of equity loan is called a closed end equity loan, which allows you to borrow based on the available equity in your home (minus the combined amount of any current liens on the residence). The funds from the loan may be used for anything – home improvements, vehicle purchases, braces, vacation costs, debt consolidation, and other large life expenses – and, in some cases, the interest may be tax deductible.
Typically a closed end equity loan is a fixed rate loan with set monthly payments, but there are adjustable rate loans also available. Like many loans, this type of loan gives the borrower the funds up front in a lump sum. Closed end equity loans also commonly have low closing costs, which makes them an attractive option for borrowers.
Please contact one our of consumer lenders to apply for or discuss your closed end equity loan options.