What is a Home Equity Line of Credit?
Perhaps you’ve heard of a home equity line of credit, or HELOC—also known as a “second mortgage.” When needed, you can take advantage of this opportunity by using your home, often your most valuable asset, as collateral for a new loan from C&F Bank.
A home equity line of credit gives you access to a sizable pool of cash at a reasonable interest rate. It’s usually a percentage of your home’s value, less the balance remaining on your mortgage and adjusted based on your creditworthiness and ability to pay. Many C&F customers find this a practical solution for funding a significant purchase.
When a Home Equity Line of Credit Makes Sense
Tapping into the equity in your home can be a good way to access cash quickly, but you should have a good reason for doing so. After all, you’re borrowing against the roof over your head.
Home improvement is one of the main reasons C&F customers take out a home equity line of credit (HELOC). Besides making a home more comfortable and attractive to live in, upgrades could raise its value. But if you plan to sell the house, just make sure that the types of
improvements you pursue are worth your investment.
Our customers also utilize their home equity to consolidate high-interest debt, fund investment properties, and cover emergency expenses. Though all of these scenarios should be approached cautiously, a HELOC
can often be the smartest and most affordable way to handle them.
Looking for a Home Equity Line of Credit?
Let us take care of the closing costs.**
Contact us to learn more.
*The introductory APR (Annual Percentage Rate) will be effective for the first twelve (12) months after your account is opened and normal credit underwriting determines this special rate. After the first twelve months, your standard APR could range from Prime (currently 5.00%) to Prime + 2.50% (currently 7.50%) based on your line amount, combined loan-to-value (CLTV) and other factors. Prime rate as of 6/14/18 was 5.00% as indexed in the Wall Street Journal.
** C&F Bank will pay the following closing costs: Tax Tracking fee, Credit Report cost, Appraisal fee, Lender’s Title Insurance Policy, Deed of Trust recording cost, Settlement fee, and Flood Determination fee. APR is based on the assumption that the finance charge may include these closing costs. Closing cost reimbursement is required if line is closed within the first three years. This promotion does not apply to home equity lines of credit used to purchase a dwelling or when a change of ownership is made at loan closing. Interest on your home equity line of credit may be tax deductible, consult a tax advisor regarding deductibility of interest. An increased line amount of $25,000.00 is required for refinancing an existing C&F Bank debt. Maximum loan amount of $200,000. This loan offer is subject to change without notice and is subject to credit approval. Homeowners insurance is required. Other terms and rates are available.