What is equity?
Equity is the difference between how much you owe on your home and the amount your home is worth. The more you pay on your mortgage, the more equity you have in your home. For example, if you owe $125,000 on your mortgage loan and your home is worth $200,000, you have $75,000 of equity in your home. Your equity can also increase if your home appraises for more than it previously did.
What does a Home Equity Line of Credit do?
A Home Equity Line of Credit, often referred to as a HELOC, uses the equity in your home as collateral to guarantee the loan. You will receive your funds as a revolving credit line – like a credit card.
Here’s what you can expect with a HELOC from Midland States Bank:
- Access to a line of credit for ongoing use. You won’t have to apply for another loan each time you need money—just access your HELOC. As you repay your outstanding balance, you will receive back that amount of available credit.
- Qualify for $7,500 - $100,000, depending on the amount of equity you have
- Access to funds up to 10 years
Equal Housing Lender. Member FDIC. *5.99% APR Introductory Annual Percentage Rate (APR) is available on Home Equity Lines of Credit with an 85% or less loan-to-value (LTV). The introductory interest rate will be fixed at 5.99% APR during the four-month introductory period. Offer is available for new applications submitted starting May 1, 2024. Offer may end without notice. After the four-month introductory period: the APR is variable and is based upon an index plus a margin. The APR will vary with Prime Rate (the index) as published in the Wall Street Journal. As of May 1, 2024, the variable rate for home equity lines of credit is 8.50% APR (For FICO Scores of 740 or higher and LTV less than 71%), 8.75% APR (For FICO Scores of 740 or higher and LTV between 71% and 80.9%), 9.25% APR (For FICO Scores of 740 or higher and LTV between 81% and 85%), 8.75% APR (For FICO Scores of 700-739 and LTV less than 71%), 9.00% APR (For FICO Scores of 700-739 and LTV between 71% and 80.9%), 9.50% APR (For FICO Scores of 700-739 and LTV between 81% and 85%), 9.00% APR (For FICO Scores of 660 – 699 and LTV less than 71%), 9.50% APR (For FICO Scores of 660 – 699 and LTV between 71% and 80.9%), 10.50% APR (For FICO Scores of 660 – 699 and LTV between 81% and 85%). A minimum of $7,500 and a maximum of $100,000 credit lines are available with this offer. The rate will not vary below 4.00% APR (the floor), with the exception of the introductory APR, or above 17% (the ceiling). Interest-only payments will cause your monthly payment to increase, possibly substantially, once your credit line transitions to the repayment period. In addition, a balloon payment will result, which means a one-time large payment will be required to pay off your line of credit balance. The processing fee is $275. Additional fees may apply. This offer is subject to normal credit qualifications and program guidelines. Rates are subject to change without notice. Property insurance is required. Consult your tax advisor regarding the deductibility of interest. Other restrictions may apply. Credit score will be affected if Midland States Bank needs to run credit for loan approval.