Access the equity in your home with low rates and flexible terms.
Home Equity Line of Credit (HELOC)
A Schools Financial HELOC allows you to draw funds as needed (up to a predetermined limit) using the equity in your home as collateral. You'll pay less in interest with our low loan rates, plus, the interest you pay may be tax deductible.2
Home Equity Loan
A home equity loan allows you to access the equity in your home at a low, fixed rate. Unlike a HELOC, a home equity loan is made for a specific amount and you receive the funds as a lump sum when the loan is finalized. Interest you pay may be tax deductible.2
1 APR = Annual Percentage Rate. The APR is variable. The APR is determined by adding the applicable “Margin” to the “Index” in effect on each APR Adjustment Date. The Index is the Prime Rate as published by the Wall Street Journal. HELOCs are not allowed behind negatively amortizing first mortgage loans (including reverse mortgages) or first mortgages with a balloon. Third party fees of up to $1,500 are waived unless you pay off your loan within the first three years. Plus, title and escrow fees of up to $1,500 for loans with construction in progress. For loan amounts $99,999 and under, “no closing costs” are based on the property value being established using an Automated Valuation Model (AVM).
2 Consult a tax professional.
Home Equity Loan Benefits
Using the equity in your home may provide the following advantages:
Possible lower costs
- Lower monthly payments. Interest rates on home equity financing are typically lower than credit cards or personal loans, which could mean lower monthly payments.
- Potential tax benefits. Home equity interest payments are generally tax deductible. (Consult your tax advisor regarding the deductibility of interest.)
- Higher credit limits. Home equity financing typically has higher credit limits than credit cards or personal loans, giving you access to more funds.
- Greater financial control. If you’re approved for a Home Equity Line of Credit, you can access your variable-rate line of credit during the draw period, paying interest and principal only on the funds you use.
- Home improvements. Home equity financing can be used to fund home improvement projects.
- Education tuition. With the high cost of higher education and student loan financing, home equity financing can provide an affordable option.
- Debt consolidation. Combining higher-rate loans into one home equity loan could lower your monthly payments and interest expense.
- Special occasions. A home equity loan may be used to fund a wedding or special trip or vacation.