Spring is the perfect time for new beginnings. Whether you are looking to make a big purchase or start a new project, you can jump into this budding season with a home equity installment loan! Your Greenville Savings Bank is prepared to help you achieve your financial goals this year.
What is a Home Equity Loan?
A home equity loan allows you to use the equity on your home as collateral to borrow money. The amount is determined based on the value of your property and what you have paid off. These loans are often referred to as a “second mortgage.” Home equity installment loans supply borrowers with a lump-sum value that is paid back over a predetermined period with monthly fixed installments. [1]
Why Should I Consider a Home Equity Loan?
A home equity installment loan provides you with the full amount to be used at your convenience and they can be used for anything! Many borrowers use this loan to invest in a second house, pay off college debt, or make additional improvements to their home to further increase their equity.
Examples of major home improvement projects that individuals may use a home equity loan for:
- Kitchen renovation
- Bathroom renovation
- Adding a complex addition to your home, such as building an attached garage
- New roof and siding
To make monthly payment predictable, interest rates and monthly payments are fixed for home equity installment loans. [1]
Before receiving your home equity installment loan, you will need a lender to review three vital components. Appraising your equity, debt-to-income ratio, and credit score will determine your eligibility for a loan. Even if you are weak in a certain area, the two other components can aid in increasing your eligibility. [1]
All home equity installment loan decisions are made locally by our experienced team and loans are serviced in-house at our local banks in Greenville, Hermitage, and Neshannock.
What Should I Watch Out For?
Since home equity installment loans are provided in a lump-sum, you may find it tempting to spend a lot at once. Prior to receiving the loan, determine your budget. By acknowledging your spending habits and resisting daily purchases, you can ensure wise spending. [1]
Once you determine whether a home equity installment loan is right for you, you will need to find the best bank for home equity installment loan rates. Contact our banking team today at your local bank in Greenville. Let Greenville Savings Bank help you get started on your next spring project!
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