Todd Shaull

Feb 21 2014

Unlock Your Home’s Equity

Unlock Your Home's Equity

Your home’s equity can be a great resource for making home improvements, purchasing a new or used vehicle, college tuition, vacation, paying unexpected bills, and more.

Home equity loans are an agreement to use your home as collateral for a potentially lower interest rate. Keep in mind, if you default on the loan, your home is at risk, so it’s important to borrow wisely.

There are three types of Home Equity Loans offered by Hills Bank

Closed-End Home Equity Loan
A closed-end home equity loan is similar to a car loan and best for situations when you know exactly how much money you want to borrow and want several years to pay it off. The payment and interest rate remain the same over the life of the loan. A closed-end home equity loan may be a good option for buying a new or used vehicle, college tuition, or for one-time expenses.

Home Equity Line of Credit
A home equity line of credit (HELOC) is a loan where borrowers are pre-approved for a certain amount and can draw on funds when needed. Funds can then be drawn and paid down similar to a credit card. The advantage of a HELOC is you only pay interest on funds you are using versus the entire line amount. Monthly payments can vary based on the amount withdrawn. A HELOC may be a good option for long term or mid-range home improvement projects.

Variable Rate Home Equity Line of Credit
A variable rate home equity line of credit (HELOC) works exactly the same as a HELOC, but the interest rate can vary based on the prime lending rate. A variable rate HELOC is optimal when prime lending rates are low.

Benefits of a Home Equity Loan and Home Equity Line of Credit

Tax Deductible
In many instances, a home equity loan can be tax deductible. For more information on tax deductibility, please seek advice from your tax professional.

Applying is Quick and Simple
Applications typically take between 10-15 minutes to complete. Generally, the information needed when applying is income information, employment information, and the purpose of the requested loan. It’s that simple!

What’s your favorite thing you’ve use a home equity loan for – a family vacation, new car, or kitchen remodel? Let us know in the comments below.

Todd Shaull

About Todd Shaull

Todd Shaull is a Vice President, Branch Manager at Hills Bank’s Cedar Rapids location on Williams Blvd. Todd has been at Hills Bank since 1999 helping customers with checking and savings accounts, consumer loans, auto loans, and home equity loans. Todd can be reached at

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