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