Bank of Zumbrota, Zumbrota Minnesota

Home Equity

HOME EQUITY LINE OF CREDIT (HELOC) is a flexible, pre-determined line of credit. Once your HELOC is established, you can borrow any amount up to your credit limit whenever you want. To access the money you simply write a check from your HELOC account or use Online Banking. Repayment is flexible; you can pay the monthly interest only or include additional principal payments in an amount that you determine.

A HOME EQUITY LOAN is a fixed loan amount with specific payments for a set length of time. The payment amount is determined by the amount and length of the loan. A Home Equity Loan is typically used for purchases which require a lump sum of money up front and where you want a fixed interest rate and fixed monthly payment.

Common use of Home Equity Line of Credit or Loans are as follows:

Debt consolidation

Vehicle or RV purchases

Vacations

Home improvements

Anything you may want!

Best of all, the interest on your loan may be tax-deductible which can mean big savings. Consult your tax advisor to see if this may apply to you.