Your home can do more than comfort and shelter the family. If managed properly, your home can help pay college tuition or purchase a more dependable car. Here’s how.

It takes a good source of cash to maintain a family. For years, the most popular means of funding major expenses has been Home Equity Loans. Such loans are typically a smart way to borrow because they leverage equity sooner, rather than later when the house is sold. Added to that benefit, even though the loan is tied to your home, the rate is typically less than a standard mortgage loan rate.

An equity-based loan can come in many forms, but there are two main ones: an equity line or an equity loan. Both loans use equity in your home as collateral. Your home’s equity is simply the difference in dollar value between what you owe on the home and what an independent professional appraiser says it is currently worth.

  • An Equity Line – known as a “HELOC” for Home Equity Line of Credit – works like a credit card in that you write a check or use a credit card but cannot exceed your credit limit. You make monthly payments only on the amount you borrow, not the full amount of the “Line”.
  • A Home Equity Loan is a loan for a fixed amount issued at one time. You repay the loan via payments every month just like with your mortgage loan.

Because these sources of funds are loans, there are many rules and regulations that govern their structure and use. And, as you might expect, there are terms and disclosures for many of the loan details such as interest rate, closing costs, personal finances, credit reports and the like.

A Home Equity loan may be just what you need to pay for big-ticket items.

Talk to a people-friendly banker at Peoples Bank about your needs today. They get paid to help you thrive and can help you decide what is best for your family.

You can also apply for Peoples Bank Home Equity Loans and Home Equity Lines of Credit to start the investigation process at a time most convenient to you.

The US Federal Trade Commission publishes information about Home Equity-based loans, and includes tips on how to recognize unscrupulous lenders. Browse to https://www.consumer.ftc.gov/articles/0227-home-equity-loans-and-credit-lines.