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What Can I Do With a Home Equity Line of Credit?

According to Ohio home values have increased by 12.3% over the past year. What this may mean for you is your home is worth more now than what you may think and the equity (the difference between what you owe and what it is appraised at) could be a great source of financing. Home equity loans allow you to borrow money using your home’s equity as collateral. The funds can really be used for anything, although they’re most commonly used for home improvements, such as renovations or remodeling; paying for a college education; funding the purchase of a second home; or consolidating high-interest debts, such as credit cards.

At Citizens National Bank, we typically offer a 10-year line of credit with a variable rate, but we also have fixed rate options. Minimum monthly payments are calculated at 1 or 1.5% of the outstanding principal, however as a line of credit the borrower may pay as much as they wish and it’s credited back to the line to be available for future purchases. The borrower may draw on the line of credit at any time as long as there is availability of funds. The home equity line of credit is paid over a period of time, but it is not an amortized loan and a balance could be due at the time of maturity.

It’s easy to apply for a home equity line of credit – simply speak to a mortgage lender in any of our offices. You’ll be required to provide 2 years of W2s and tax returns, a copy of your most recent pay stub, and a listing of your current financial assets and liabilities. A new appraisal and updated title search may also be required.

*Final approval is subject to underwriter’s review.

While we trust you’ll find value in this content, it’s important to view it as a starting point. For personalized guidance tailored to your unique circumstances, we strongly advise consulting with a qualified professional who holds the necessary licenses. This article, along with any associated resources, should not be interpreted as legal or financial advice. While efforts were made to ensure accuracy at the time of preparation, we cannot guarantee its current relevance.

Citizens National Bank does not warrant or represent the accuracy, applicability, completeness, or suitability of the information provided. Citizens National Bank explicitly disclaim any responsibility for the use or misuse of these materials. By accessing this site, you agree to absolve Citizens National Bank from any associated liabilities. Exercise caution and seek professional advice before making any financial or legal decisions based on the information provided here.

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Julie Harris

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