A Home Equity Loan is more often used for one-time expenses such as buying a vehicle or consolidating other debts. You will have a fixed rate of interest* and a fixed payment amount for easy budgeting.
The Idaho First Bank Home Equity Loan (HELoan)
Here is how the HELoan works:
An Idaho First Bank Home Equity Loan is a fixed rate loan that uses the equity you have accumulated in your primary or secondary home as collateral for the loan. The amount you borrow will be paid back over a set term with a fixed rate of interest and monthly installments of principal and interest.
Once you take out your loan, you cannot borrow further from the loan.
*Loans are subject to credit approval and program guidelines. A fixed rate and payment home equity loan is secured by the borrower’s primary residence. Interest rate and maximum combined loan to value (CLTV) up to 80% may vary based on customer’s credit score, loan amount, and repayment term. Minimum loan amount is $25,000. Maximum loan amount is 1st lien: $1,000,000 2nd lien: $500,000. Home Equity Loans in first lien position on a primary residence will be required to establish an escrow account for a minimum of 5 years to collect property taxes, property insurance and flood insurance (if required by federal regulation