How a Standard Home Equity Works
A Standard Home Equity offers a low introductory rate and the longest draw period, allowing a homeowner to draw from their equity, anytime, for 10 years. When the draw period ends, payments are then amortized over a 15-year repayment period. The monthly payment remains the same throughout the remainder of the repayment period (unless the variable rate changes, at which point the payment will adjust).
Who Should Get One?
There are many reasons homeowners get Home Equities, such as making repairs, remodeling their homes, and paying off higher interest debt. The Standard Home Equity is the most popular choice for most homeowners, accounting for more than 70% of all Home Equities. If you’re a homeowner considering a Home Equity, there’s a good chance the Standard Home Equity will be your best choice.
Let’s help you determine which HELOC is best for you: