Home Equity Loans: A Comprehensive Guide

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Home equity loan

A home equity loan could provide the means of helping you finance your future. As a homeowner, you may have worked hard to build equity in your property. A major benefit of owning a home is having the ability to access the equity in your home and use it as collateral for a loan. Camino’s Home Equity Loan Program (HELP) could be a good option for you.

With our guidance, you may find that our Home Equity Loan Program could be the most strategic way to pay for large, one-time expenses and smaller expenses that have added up. Whether you’ve been wanting to do home improvements to increase the value of your home, or you’ve incurred unexpected expenses, Camino’s home equity loan could help.

You could also consider a home equity line of credit that uses the difference between your home’s value and your mortgage balance as collateral, so interest rates are lower. Unlike a home equity loan that is paid in one lump sum, a home equity line of credit is a revolving source of funds that you can access at any time. 

What are Some Featured Benefits of a Home Equity Loan

  • Take advantage of rising home values to leverage your loan amount.

Home prices are increasing in value at the fastest pace in 15 years. With the nearly unprecedented year-over-year increase, as your home’s value rises, the amount of equity you can borrow against increases proportionately. 

  • Get paid in one lump sum.

A home equity loan is paid in one lump sum, which makes it a good option for homeowners who know the exact amount they need to borrow.

  • Enjoy a fixed interest rate.

Unlike a home equity line of credit, which comes with a variable interest rate that may increase at any time, with a home equity loan you’ll receive a fixed rate. You will know exactly how much you’ll pay back each month. And there are no prepayment penalties.

  • Receive lower interest rates

Since you use the equity of your home as your collateral, you receive a secured loan rate, which is considerably lower than other loan options. 

  • Receive long repayment terms.

Since the repayment terms of your loan can be spread over a longer period of time, depending on your loan agreement, this type of loan ranges typically from five years up to 20 or 30 years. This makes the monthly payment amount manageable.

Do You Need a Home Equity Loan? Contact Camino today!

Let Camino help you better understand the benefits of our Home Equity Loan Program. We want our members to find the best loan and financing option that works for them and their specific needs. Camino offers a variety of loans to ensure you receive the right support for the reason you’re borrowing money. Each loan comes with different terms that help determine what you’re most qualified for. Please go online at caminofcu.org, give us a call at 800-835-3400 to speak with one of our Member Advisors, or contact us for more information.

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