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A line of credit is a simple financing tool built around flexibility. Instead of giving you a lump sum of money to spend, it keeps money available for you to draw on whenever you need it. It’s perfect for projects and purchases where costs can be unpredictable.
It’s essential to look at your home’s equity as a way to invest in your future — not as a petty cash fund for things you want now (but really can’t afford). Typically, if you use a HELOC or cash-out refinance loan, you’ll get a lower rate than using other loans because you’re putting your home up as collateral. And because your home is the collateral for the loan, it may be at risk should something go wrong with your loan.
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Even though you don’t necessarily take on an additional loan with a cash-out refinance, you’ll still increase your overall debt load and pay closing costs. Home improvement loans from Pinnacle Bank allow you to quickly upgrade or maintain the quality and value of your home – your largest investment! Different from a home equity line of credit, home improvement loans aren’t tied to the equity in your home. It is a personal loan, with terms and rates primarily determined by your credit score. If you plan to start your own business, or you’d like to invest in a property or other business venture, using your home’s equity may be an excellent way to do so.
We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. They can also help you prepare for the unexpected, including being able to take advantage of good opportunities when they come up. The figures entered on the input page of the calculator are for hypothetical purposes only. You should enter figures that are appropriate to your individual situation. The results provided by this calculator are intended for illustrative purposes only and accuracy is not guaranteed by financial institution.
Three Smart Ways to Use Your Home’s Equity
Many people like this type of account for unexpected expenses, rather than using a higher interest credit card. Lines of Credit give you the comfort of knowing you have cash ready when you need it. With this type of loan, you borrow against the available equity in your home, using your house as collateral for a line of credit. As you repay your outstanding balance, the amount of available credit is replenished . Use the funds as you need them and only pay interest on the portion of the credit line you use.
If one of these sounds like the right fit for you, apply using the links above. We accept online applications from residents of Tennessee, North Carolina, South Carolina and Virginia. You don’t need to use your home or other assets to borrow money. You can use your line of credit all at once or a little at a time. You also have the flexibility to borrow different amounts at different times, and your monthly payment may vary. Lines of credit allow you to be more flexible in your personal finances and give you more flexible repayment terms.
Home Equity Loans and Lines of Credit
As long as you don’t go over your limit, the money will be there to pay for whatever you need.
The equity you’ve built with your house can be put to good use. Whether you prefer a loan or a line of credit, we make qualifying easy so you’ll have the money in your hands fast. Use this calculator to determine the home equity line of credit amount you may qualify to receive. The line of credit is based on a percentage of the value of your home.
Benefits of Home Improvement Loans:
But when you use your home’s equity in a way that gives you a positive return for your future, you’ll maximize your investment and potentially save money as well. At Pinnacle Bank, our goal is to provide the best financial services to you and your family. You can refinance your mortgage for a higher amount (based on your home’s equity) and take out the difference in cash.
Use care in how much you invest because of the risk involved — your home is the collateral. Typically, you should invest no more than 80% of your home value for this purpose. With a loan, you’re taking out money one time and paying it back over a few years. Rather than a set amount, you’re using the equity in your home to open revolving credit. You can borrow money with this Line of Credit multiple times.
We understand you have questions and we’ve got answers. So, let’s get you a home loan that will make you comfortable. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes.
And when you make home improvements, choose the options that are best suited for your home — you wouldn’t put a $50,000 gourmet kitchen in a $200,000 home . Get a FREE gift when you open any Pinnacle Bank Checking Account. No hassle, no fuss, just a basic checking account with which to deposit and withdraw funds. The site you have chosen is independent from Pinnacle Bank/Bank of Colorado. We do not control external sites, and we cannot guarantee the accuracy, completeness, efficacy or timeliness of the information contained therein. JavaScript is required for this calculator.
Pinnacle Bank isn't responsible for or endorse any information provided by the website you are about to enter. Keeping your cash flow rolling along is essential for running a small business and for your own peace of mind. Pinnacle Bank has been a locally owned, community bank since 1934. We specialize in meeting our customers’ financial needs, both now and into the future. They can walk you through it and let you know quickly if it’s been approved.
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