Home equity is typically the largest asset owned by an American family. That’s why a home equity loan is often the most affordable and convenient source of financing available.
At Jefferson Bank, we’re big on customer relationships: yours! That’s why we work hard to provide industry-leading rates on your next home equity loan. We also provide individualized service to all our borrowers to ensure that the loan fits in to a solid overall financial plan.
To find out more about our bank in St. Louis or to apply for a home equity loan, call us at 314-621-0100 or come by one of our convenient St. Louis area locations today.
What Is a Home Equity Loan?
A home equity loan is a personal loan secured by a homeowner’s equity in their home. The value of that loan is determined by the appraised value of the home, the borrower’s credit, and other factors.
For example, the more valuable the home, the larger the maximum size of the home equity loan can be. Additionally, the more equity that you own in the house, the more that you can use to secure your home equity loan. In times during which your local housing market is improving, it can be very advantageous to borrow a home equity loan.
What Should I Use a Home Equity Loan for?
A home equity loan can be a great source of financial flexibility for families that own substantial home equity. It’s especially effective for families that need additional cash, but who don’t want to need to sell their home to do it. You can’t sell ‘half’ of a home to another buyer, but you can effectively ‘sell’ part of your equity back to the bank when you borrow a home equity loan.
That way, you can use the equity you have built up in your home more like you would use a savings account. During stable or rising home price conditions, it can also be a smart strategic move to improve your financial position. Interest on a Home Equity Line of Credit may be tax deductible (consult your tax advisor).
The most common use for a home equity loan is to finance home improvements that are more likely to increase the value of the home. The main reason why so many people use a home equity loan for this purpose is because it tends to enhance the value of the underlying home equity. It makes it so that, market conditions permitting, the home equity loan can pay for itself either partially or in full.
Others use their home equity loan to consolidate debt, finance major purchases, for education, or as an added source of financial security.
Apply for a Home Equity Loan in St. Louis
Ready to apply for home equity loan? You can give us a call at 314-621-0100 or come by one of our banks in St. Louis to get started.