Home Equity: Loans vs. Lines of Credit

Home Equity Loans | Home Equity Line of Credits | Which Option is Best for You? | FSB Rates | Get Started with FSB

Make Your Home Work for You

The equity in your home isn't a simple figure on a spreadsheet—it can be a powerful financial tool. Whether you want to make a significant purchase or cover unexpected expenses, tapping into your home's equity could be the key.

Your choices? A Home Equity Line of Credit (HELOC) or a Home Equity Loan. While similar, these two differ when determining the most beneficial option for your unique answer.

What is a Home Equity Loan?

A Home Equity Loan is a loan borrowed against the equity you've established in your home, unlocking the available equity for specific borrowing needs. Here's what you need to know:

Fixed Rates: You will have a fixed monthly principal and interest payment. Your credit score and equity in your home influence your fixed interest rate.
Upfront Cash: You receive all the funds in one lump sum. Each month, you'll make repayments.

Our Home Equity Loans Feature:

Fixed monthly payment of principal and interest based on term and the amount borrowed
No pre-payment penalties
Fixed interest rates up to 10 years

Ready to tap into your home's potential?

Get Started Contact FSB FSB Rates

Must be 18 or older to apply. All loans are subject to credit approval.

What is a Home Equity Line of Credit (HELOC)?

A HELOC provides a line of credit based on the equity in your home. It's a revolving fund (similar to a credit card) —borrow, repay, and borrow again. Here's what you need to know:

Flexible rate options: HELOCs can have a fixed rate for a set period of time or a variable interest rate.
Revolving credit: Borrow from your HELOC, pay it back, and borrow again. Each month, you'll repay a portion of the principal and interest. Each year, you will pay an annual fee.
Flexibility: Unlike a loan, a HELOC lets you borrow what you need when you need it.

Our HELOCs Feature:

No pre-payment penalties
Fixed or variable interest rate options
Interest is paid only on the amount borrowed

Ready to tap into your home's potential?

Get Started Contact FSB FSB Rates

Must be 18 or older to apply. All loans are subject to credit approval.

Which Option is Best for You?

Choosing between a HELOC and a Home Equity Loan depends on your unique situation. A Home Equity Loan can be a good choice if you know exactly how much you need to borrow.

On the other hand, a HELOC can offer more flexibility if you're unsure of the exact amount you need.

Need Guidance on the Best Option for You?

Get Started Contact FSB

Couple painting a room paid for by a HELOC

Concerned About A Down Payment? Discover FSB's Supportive Solutions!

Start Your Mortgage Journey