Tap into your home's equity with flexible borrowing options. Whether it's home improvements, debt consolidation, or major expenses, we have a solution.
Estimate your available home equity based on your home's value and current mortgage balance.
Compare Home Equity Loans and HELOCs to find the right fit for your needs.
* APR based on creditworthiness and loan-to-value ratio. Terms apply.
| Features | Home Equity Loan | HELOC |
|---|---|---|
| How It Works | Lump sum paid upfront | Line of credit to draw from as needed |
| Interest Rate | Fixed rate | Variable rate (can change) |
| Monthly Payments | Fixed, predictable payments | Vary based on balance and rate |
| Loan Terms | 5, 10, 15, 20 years | 10-year draw, 20-year repayment |
| Access to Funds | One-time access | Ongoing access during draw period |
| Payment Options | Principal + interest | Interest-only during draw |
| Best For | One-time projects, debt consolidation | Ongoing expenses, multiple projects |
| Maximum LTV | Up to 85% | Up to 85% |
Kitchen remodels, bathroom renovations, room additions, roofing, HVAC
Combine high-interest credit cards and loans into one lower payment
College tuition, private school, continuing education
Medical bills, unexpected repairs, family emergencies
Buy a car, boat, or RV with potentially lower rates
Fund a new business or side venture
Weddings, milestone celebrations, dream vacations
Purchase investment property or diversify portfolio
A home equity loan, often called a second mortgage, provides a lump sum of money with a fixed interest rate and fixed monthly payments. It's ideal for homeowners who know exactly how much they need for a specific purpose.
Pros:
Cons:
Loan approval subject to credit and property appraisal. Your home secures the loan.
A HELOC works like a credit card secured by your home. You have a credit limit and can borrow as needed during the draw period, paying interest only on what you use.
Pros:
Cons:
HELOC rates are variable and may increase. Your home secures the line of credit.
Understanding the tax treatment of home equity borrowing is important for financial planning.
Tax laws are complex and subject to change. We recommend consulting with a qualified tax advisor to understand how home equity borrowing affects your specific situation.
Ashmore Trust Bank does not provide tax advice.
Get a decision quickly, often within 24-48 hours of application.
Low fixed and variable rates with discounts for automatic payments.
Your application is reviewed by local lenders who know our community.
Pay off your loan early without any additional fees.
A home equity loan provides a one-time lump sum with a fixed rate and fixed payments - like a traditional second mortgage. A HELOC is a revolving line of credit with a variable rate, allowing you to borrow as needed during the draw period (typically 10 years) and make interest-only payments. Choose a loan for one-time expenses, or a HELOC for ongoing or unpredictable needs.
Most lenders allow you to borrow up to 80-85% of your home's appraised value, minus your current mortgage balance. This is called your combined loan-to-value ratio (CLTV). For example, if your home is worth $400,000 and you owe $200,000, you have $200,000 in equity. At 85% CLTV, you could access up to $140,000 ($400,000 × 85% = $340,000 total loans - $200,000 existing = $140,000 available).
Closing costs typically range from 2% to 5% of the loan amount and may include appraisal fees, title search, origination fees, and recording fees. For HELOCs, we often offer promotions with no closing costs for qualified borrowers. You can also choose to roll closing costs into your loan amount in some cases. Ask your loan officer about current offers.
In most cases, yes. We need to verify your home's current value to determine your available equity. For smaller loan amounts, we may be able to use a desktop appraisal or automated valuation model (AVM) instead of a full in-person appraisal, which can save time and money. Your loan officer will advise on requirements.
Generally, yes. You can use funds for almost any purpose - home improvements, debt consolidation, education, medical expenses, or major purchases. However, be aware that if you use funds for purposes other than home improvements, the interest may not be tax-deductible. Also, using home equity for risky investments is not recommended, as your home secures the loan.
1 No closing costs offer applies to HELOCs with initial draws of $50,000 or more. Offer subject to change and may be withdrawn at any time. 0.25% rate discount available with automatic payments from a Ashmore Trust checking account.
APR = Annual Percentage Rate. Rates shown are estimates and based on a loan-to-value ratio of 80% and excellent credit. Your actual rate may vary based on credit score, loan-to-value ratio, and other factors. All loans subject to credit approval.
Your home secures the loan. Failure to make payments could result in foreclosure. Terms and conditions apply. Ashmore Trust Bank is an Equal Housing Lender.