Whether you’re in the market for an equity line or home loan in Salt Lake City, Utah, Chartway helps you put your home’s equity to work. With low rates and flexible terms, we help you choose the right home equity option to finance your dreams—whatever they may be.
A home equity loan is only available to those who have already accrued equity in their property. They are usually referred to as second mortgages because most people get them in addition to a regular mortgage. The interest rates are typically higher and terms vary from 5 to 15 years.
The loan amount is determined by subtracting the property value from the mortgage balance and is secured by the resulting sum. Theoretically, if your property value is $250,000 and the remaining mortgage balance is $150,000 you should qualify for a $100,000 home equity loan. However, if your credit score is not in good standing, you could only be eligible for a fraction of that.
A home equity loan is typically used for making property improvements or consolidating debt, such as adding a garage, porch, or renovating your kitchen.
Questions about Salt Lake City home loans?
Similar to a home equity loan, a home equity line of credit (HELOC) is only available if there is existing equity in a property. A home equity line in Utah works something like a credit card. You can borrow as much or as you need over a period of time, paying interest only on what you borrow.
Typically, the draw period is about 10 years but can be as long as 20. The loan can be paid back in monthly installments or lump sums. One of the drawbacks to a HELOC loan is that it typically has a variable interest rate, however, we also offer fixed rates for added flexibility and predictability.
A home equity line of credit in Utah can be used for renovations of various lengths, such as replacing a bathtub or remodeling the kitchen.
Questions about home equity lines of credit?
If you're looking for a better rate, to consolidate debt, or are planning a home improvement project, we can help make refinancing work for you!
Contact us today to get started or visit one of our nearby branches in Salt Lake City.
Get started with Chartway to put your home’s equity to work for you. Our home loan team is available to answer any of your questions or to ask for advice at any stage of the home loan process.