We offer many different Home Equity products. Home Equity Loans, HELOCs, Interest-Only HELOCs, and 5/1 ARMs. It’s not always easy to figure out on your own which is best for your situation.
Interest-Only HELOCs aren’t common among all financial institutions, so some people don’t know when it’s the right option. To help you out, we broke down a few situations when an Interest-Only HELOC may be exactly what you need:
Situation 1: If you want the initial loan payment to be lower in the beginning, but you are confident you can afford a larger payment in the future. An Interest-Only HELOC begins with low interest payments throughout the draw period. During the repayment period, you make payments on principal, which is a larger payment.
Situation 2: If you have a lot of equity in your home, and you’ll use the money to go toward other investments or principal payments.
Situation 3: If your income is irregular and you need the flexibility of making interest-only payments when your income is low and larger payments when your income is high. For example, seasonal workers or union workers with potential for being laid off would fit this situation.
The flexibility of an Interest-Only HELOC makes it a great option for people in the right situations. To talk to one of our lending experts about whether it’s right for you, call us at 800.845.5025.