Vermont Home Equity Loans

Maple syrup isn’t the only thing Vermont has to offer—Vermont has a myriad of lenders offering competitive rates and terms on home equity loans and home equity lines of credit (HELOC). Whether it’s debt consolidation in Burlington (05401) or a new roof in Williamsville (05362), Vermont homeowners are tapping into their home’s equity to finance a variety of projects. Borrowers in Vermont can choose between two traditional home loans—the home equity loan and home equity line of credit. For both products, Vermont lenders require that borrowers have a good to excellent credit score and typically allow up to 80% loan-to-value for qualified borrowers.

While both are second mortgage products, each has its own distinct features and benefits. A home equity loan is a fixed rate product that offers a one, lump sum amount of money to the borrower. The benefit is the financial stability of monthly payments and the fixed rate. Home equity loans work best with one-time expenses such as a basement remodel or purchasing new home appliances. A home equity line of credit (HELOC) is a variable revolving credit line where the borrower can draw money against the line. The main benefit is flexibility and the steady cash flow.