Home Equity Loans

Whether you need a loan for that home improvement project or just want a line of credit in case of an emergency, Bell State Bank & Trust can help you find a loan or line of credit that suits you.

How to Apply for a Home Equity Loan or Line of Credit

Let us help you determine which equity-based loan is best for you. To apply, just call any Bell State Bank & Trust location. We generally will need the following:

  • Personal financial information about you
  • Verification of your income from employment and other sources
  • Outstanding balance of your current mortgage
  • Estimated value of your home

Check with us on the loan you need, and see what we can do for you! Contact a personal banker.

Benefits of a Home Equity Loan

A home equity loan is a type of loan in which you use the equity – the current market value minus the balance you still owe on your mortgage – you’ve built up in your home as collateral.

Compared to other loan options such as personal loans, a home equity loan at Bell State Bank & Trust has many benefits:

  • It is a secured loan, so may have a lower interest rate than an unsecured loan
  • There’s no pre-payment penalty
  • It may have tax benefits (talk to your tax advisor)

If you’ve been thinking about adding on to your house, remodeling or redecorating, using the equity in your home could make a lot of sense. People just like you also use home equity loans for education payments, medical bills, wedding expenses, vacations and consolidating debt.

Here’s another one. If you’re thinking about buying a new car, you may want to consider a home equity loan. Why? Home equity loan interest may be tax deductible; interest on an auto loan is not. When you compare a home equity loan to an auto loan, you should include the benefit of a tax deduction to find out which provides the least cost to you, the borrower. Consult your tax advisor to learn more about the tax benefits of a home equity loan.

Home Equity Loan vs. HELOC: What’s the Difference?

A home equity loan and a home equity line of credit (HELOC) are not the same; however, both are based on the equity you’ve built up in your home. The main difference is that a home equity loan is taken as a lump-sum, one-time loan with a fixed interest rate, while a HELOC is a revolving “line of credit” that remains available to you for a specified time period, with an adjustable interest rate that is applied to the outstanding balance. HELOCs are used primarily as financial safety nets, or “rainy-day funds.”

Most people choose a home equity loan if they:

  • Want the money up front
  • Prefer to pay off their loan in fixed payments, with the principal and interest payments staying the same for a fixed period of time
  • Need a specific amount for an immediate need

On the other hand, a HELOC might be the right way to go for people who:

  • Want a set credit limit with a variable interest rate
  • Need access to funds both now and in the future – so you can use the funds all at once, or have the flexibility to use your credit any time
  • Want convenient access to HELOC funds through your Bell State Bank & Trust deposit account

NMLS Registry Information for Bell State Bank & Trust Mortgage Loan Originators

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Do you have a question, or need more information about home equity loans? Contact one of our personal bankers.

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