It has a variable interest rate, with a typical draw period of 10 years. During the draw period, you have the option of interest only payments, or fully amortized. At the end of the draw period, the loan converts to a fully amortized 15 or 20 year term which no longer offers the interest only payment option. A home equity loan is a fixed rate, fully amortized loan, with fixed monthly payments throughout the term of the loan. A home equity loan typically allows for higher loan to value limits.
Loans are available for owner-occupied single family homes, condominiums and townhouses.
Because the loans are secured by your home, the interest paid may be tax deductible up to the full value of your home. Consult with your tax advisor. Copyright 2000 Capital Resource. All Rights Reserved.