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Now is an ideal time to consider using your home equity to fund your home improvement projects. Whether you are looking to upgrade your landscaping, build a backyard deck, remodel your kitchen, renovate your bathroom, or take on another project, National Exchange Bank & Trust’s home equity loans, including a line of credit, make it easy.

In recent years, the average homeowner with a mortgage saw substantial growth in their home equity due to soaring home prices. This is great news for homeowners! If your home’s current market value exceeds the mortgage loan balance, you can borrow a percentage of that equity. 

There are two options for using equity to remodel: a home equity loan and a home equity line of credit (HELOC). Each option has their unique advantages. Based on your needs your National Exchange Bank & Trust lender can help you determine the best option.

Home Equity Loan vs. Home Equity Line of Credit

Differences between a Home Equity Loan and HELOC
Home Equity Loan HELOC

Available as a lump sum.

Similar to a credit card, use the funds as needed based on your pre-approved amount.

Adjustable or fixed interest rate terms with monthly payments.

Interest-only payments (interest rates vary over time) are an option. Pay down on principle to free up available credit.

Closing costs similar to a first mortgage.

Lower closing costs than a Home Equity Loan.

Best for one-time large expenses.

Best for when you need access to funds at different times.


Home equity loans are great to use for large, one-time expenses. HELOCs make sense for ongoing projects and improvements or even as a smart way to pay for other expenses such as tuition, vehicles, or emergencies. The home equity loan that is best for you may depend on factors such as your plans for selling the home, the length of time you plan to live in your home, the type of improvement and the value the improvement will add to your home.

Home Equity Loan

A home equity loan is based on your equity and uses your home as collateral. A borrower can apply for a set amount of money and upon approval of the loan, receive the amount up front. Using a home equity loan for home improvements or other purchases is often the preferred way to borrow, as it typically offers better terms than personal loans or drawing from a retirement account. To estimate your loan needs, try our easy-to-use loan payment calculator.

HELOC for Home Improvement Projects

A HELOC for home improvement projects or other purchases can be another great option for homeowners looking to cash in on their home equity. These revolving lines of credit also use your home as collateral for home improvement projects. This allows you the flexibility to draw money as you need it up to a specified threshold, which is especially helpful if you are not sure how much you will need to borrow.

Using your home equity to remodel is the perfect way to fund your home remodeling or home improvement project. Using equity for home improvement projects makes sense as these projects often increase your home’s value helping you to build equity. Once your renovation is complete, you can move on to the best part - enjoying your updated space! Get started today by applying for a home equity loan or HELOC with NEBAT.

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