Leverage The Equity in Your Home
Get a low rate and flexible repayment options at Chesapeake Bank. Use the equity in your home to help pay for what matters most — for both now and in the future.
What are the major differences between a Loan and Line of Credit?
Home equity lines of credit (HELOCs) and home equity loans both use the equity in your home to secure a loan, but they also both add to your overall debt. Many people use HELOCs and home equity loans to make significant improvements to their home. These two types of borrowing draw from the value of your home above and beyond what you already owe with your mortgage. If you are looking to increase the value of your home, a HELOC or a home equity loan can be a smart move but there are differences between the two. Here are some of their distinctives:
Home Equity Loan — a lump sum loan
- Fixed interest rate
- Fixed payments of principal and interest
- After closing, you get the entire loan amount in one lump sum
Home Equity Line of Credit (HELOC) — draw money as you need it
- Adjustable interest rate
- Draw money as you need it
- Pay interest only on the money you draw
- Interest-only payment options
Chesapeake Bank’s competitive rates make it easy to write checks against the equity in your home with a HELOC from Chesapeake Bank. Or, our home equity loan is a smart way to borrow for debt consolidation, educational expenses, a vehicle, medical expenses and more.
Check rates, locate a loan officer, and apply online through our Online Mortgage Center.