North Carolina Home Equity Loans

Whether it’s for a home improvement in Durham (27701) or paying for college tuition in Charlotte (28201), homeowners in North Carolina are using home equity loans and home equity lines of credit (HELOC) to finance some of the important life projects. Home equity loans and home equity lines of credit are readily available through lenders throughout North Carolina and most second mortgage products allow the homeowner to leverage up to 80% of the loan-to-value from his or her home’s equity. Both home equity loans and home equity lines of credit (HELOC) are ideal not only for home improvement and repair but also for debt consolidation or financing college tuition. Although both products fall under the same umbrella of “home loans,” each provides different type of financing.

A home equity loan is structured like a traditional mortgage product. This fixed rate loan provides a one lump sum payment that the borrower typically uses for a single project such as adding a new pool or a new roof. A home equity loan is also ideal for debt consolidation. Debt consolidation is when the borrower pays off several loans using the home equity loan. The advantage is that the borrower has only one monthly payment, typically at a lower rate. For ongoing expenses such as financing college tuition or for ongoing medical expenses, a home equity line of credit (HELOC) may be the best choice. The variable rate home equity line of credit (HELOC) is a revolving line of credit where the borrower only repays the amount drawn against the line. The advantage is a steady cash stream and flexibility.