Westmark Credit Union
We are a full-service financial institution, owned by our members & committed to the development of their financial future. We have 12 convenient locations.

FAQs and Answers About Home Equity Loans

A home equity loan is a great way to finance large purchases with a low interest rate by leveraging the money you have already paid into your house. Could a home equity loan be the right way for you to meet a major expense? Here are the answers to some questions that may be on your mind about using home equity loans for your personal finance needs.

What exactly is a home equity loan?

Your home equity is the amount of money you have paid into your home. In other words, the amount of your mortgage that you have paid off is your equity. A home equity loan allows you to use that money when you need it. Home equity loans are usually made for a portion of your equity, but in some cases, it is possible to take a loan for the entire amount of your equity. The home equity loan payment is paid monthly in much the same way you pay your mortgage. As you repay the loan, you rebuild your equity.

What is the difference between a home equity loan and home equity line of credit?

A home equity loan is paid out in one lump sum. Home equity lines of credit are more like credit cards. You get a card or checkbook with an account that has a limit of the total amount of the home equity loan. You can use it as needed over time by using the card or writing a check. As you make payments, that money becomes available to you again, as it would if you made a credit card payment or checking account deposit.

Is a home equity loan right for me?

Home equity loans offer low interest rates and friendly terms, but if you don’t repay them, your house could be on the line. Talk to someone at your credit union about your loan options to see which one is the best choice for you.

At Westmark Credit Union, we’re committed to providing the best possible finance advice to our members, to help each member achieve their goals. For more information about mortgages, home equity loans, and our other banking products, call our credit union in Idaho at (208) 523-1071.

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2520 Channing Way
Idaho Falls, ID 83404

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