Home Equity Line of Credit vs. Home Equity - InTouch Credit Union
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Home Equity Line of Credit vs. Home Equity

Choosing between a Home Equity loan and a Home Equity Line of Credit (HELOC) can seem confusing. InTouch Credit Union wants you to have the information to decide which choice will suit your situation best. When you are drawing on the equity you have in your home, it pays to be mindful of how you will access the loan amount, the way you will draw the money, and the interest rate you will be paying.

Home Equity Loan and Home Equity Line of Credit Comparison

In the table below, ITCU provides you with comparisons that can help you to make your decision. Be sure to check out the Home Equity Loan rates and HELOC rates.

Feature Home Equity Loan Home Equity Line of Credit (HELOC)
Funds Distribution Funds disbursed in one lump sum Available funds can be used as needed, but must advance a minimum of $100 ($4,000 in Texas) at a time.
Access to the funds Deposited in your CU account or by check to the member. In person, by phone or in writing, Online Banking and MoneyLine.
Borrowing Limits This loan, plus any other outstanding, liens may not exceed 90% (80% in Texas) of the home’s fair market value. This line of credit, plus any other outstanding liens, may not exceed 90% (80% in Texas) of the home’s fair market value
Monthly Payment Monthly fixed payment amounts. Monthly variable payment amounts – depends on balance advanced and changes in the APR.
Interest Rates Fixed Rate. Variable rate (Index plus margin = APR) adjustable during its term on the 1st day of each calendar quarter.
Interest Charges Interest accrues on the outstanding loan amount from the day of closing. Interest is charged only on the outstanding balance and accrues from the date of advance.
Tax-deductible interest Interest may be tax deductible. Consult a tax advisor. Interest may be tax-deductible. Consult a tax advisor.
Terms 5, 10 or 15 year terms with a fixed payment amount. 5 year draw period requiring payment of interest only each month and repayment periods of 5, 10 or 15 years.

Ready to Tap Into your Home’s Equity?

Choose ITCU’s Home equity loan  or HELOC today and get your equity working for you.

Still have questions? Call Member Care, at 800-337-3328, Option 3.