Still not sure whether a Home Equity Loan or line of credit is the way to go? Compare the details of the two options.
| Home Equity Detailed Comparison - California |
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Home Equity Loan |
Home Equity Line of Credit |
Distribution of Funds |
A Home Equity Loan is distributed in one lump sum; useful if you know exactly how much you need to borrow |
A Home Equity Line of Credit is a revolving credit account allowing you access to your money over time, when you need it. |
| Access to Your Loan Funds |
The total amount will be distributed to you by check or transferred into the deposit account of your choice |
Access your Home Equity Line of Credit through convenience checks, telephone or online transfer to any of your other SMCU accounts. |
| Fixed or variable monthly payment |
Since you're borrowing a set amount for a predetermined term, your payments will be the same each month |
Like a credit card, the amount you owe each month is determined by the balance of your line of credit and may fluctuate over time. |
| Fixed or variable rate |
The rate will be established once your loan is approved and will remain the same throughout the term of the loan |
Interest rate varies monthly and is tied to the Wall Street Journal Prime Index. |
| Interest - only payment option |
Your monthly payment is set at the time the loan is approved and does not include the option of interest-only payments |
$100 minimum payment or 1% of the outstanding balance; whichever is greater.
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| Tax advantages |
Interest is generally tax deductible—consult your tax advisor to see if this applies to your situation |
You may choose to make interest only payments or more each month to principal |
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Apply Now |
Apply Now |
