Tennessee Home Equity Loans
From the rolling hills of Nashville (37203) to sprawling suburbs of Lenoir City (37771); Tennessee homeowners are using the equity in their homes to finance home improvement projects and debt consolidation. Tennessee homeowners are also “thinking outside the box” when it comes to home equity loans and home equity lines of credit (HELOC). Some Tennessee homeowners are using second mortgage products to fund weddings, college tuition, medical expenses and auto purchases.
The main difference between obtaining a home equity loan and a home equity line of credit (HELOC) in Tennessee is the rate structure and how the money is paid. A home equity loan is a fixed rate second mortgage product where the borrower receives a one lump sum amount of money that is repaid on a regular monthly schedule. A home equity line of credit (HELOC) is a variable rate revolving line of credit. The borrower makes cash draws against the line as needed. Examples of ideal projects for a home equity loan include debt consolidation, home improvement, repair or paying for a wedding. On the other hand, ongoing expenses such as college tuition, medical expenses or an extensive home remodel or repair may work better with a home equity line of credit (HELOC).