Home Equity Loans & HELOCs: An Untapped Resource - JD Bank

A JD Bank home equity loan or home equity line of credit (HELOC) can give you the financial assistance you need. If your house has increased in value, or you’ve paid off a portion of the initial loan since you purchased your home, you could have a powerful financial asset to utilize for just about anything.

A home equity loan or a HELOC from JD Bank can provide you with the financing for home renovations, wedding expenses, a dream vacation or college bills. JD Bank can get you the funds – how you use the money is dependent on your needs and imagination.

Home equity loans and HELOCs can be a financial solution for a variety of needs, and many people fail to recognize this viable option. Perhaps it’s time to increase your equity IQ.

“They are absolutely an untapped resource,” said Karen G. Drewett, Executive Vice President and Chief Lending Officer of JD Bank. “You see people using credit cards all over, but home equity lending can be used for anything, including unforeseen circumstances. After we bought our house we had all three of our air conditioners go out in an 18-month period. That was a perfect situation for a home equity loan, because we didn’t have to tap into our savings, and we can pay it back over time.”

“You see people using credit cards all over, but home equity lending can be used for anything, including unforeseen circumstances.” – Karen G. Drewett, JD Bank Executive Vice President and Chief Lending Officer

Given the current interest rates, now could be the perfect time to explore what a home equity loan or HELOC from JD Bank could do for you.

“The best time is when the rates are low, which is now,” Drewett said. “You can actually get up to 90 percent of your value on a home equity loan. That can be a significant amount, even if you haven’t had your house that long. It’s also a good time to refinance.”

While home equity loans and HELOCs from JD Bank are similar, each has unique characteristics. A home equity loan is a loan made against the equity in a home that typically has a shorter loan term than the traditional mortgage. They are paid in a lump sum.

Unlike home equity loans, HELOCs are open lines of credit that you use at your discretion within a set period. Upon approval, JD Bank sets a maximum credit limit based on the value of your home. A home equity line of credit requires you to pay a smaller percentage of what you borrowed in the payment.

“A HELOC can be considered like a credit card,” Drewett said. “Generally our HELOCs are for five years. You don’t want to keep high debt for short-term needs. A HELOC is for needs that can come up.”

If you’re considering unlocking the potential of home equity lending with JD Bank, it’s important to know the details of your home and bring along some information when you visit your local branch.

“Customers would need a couple of years of tax returns and maybe their last check stub,” Drewett said. “A property description, or the most recent appraisal of their home, is something I bring along with me when I fill out the application. It’s important to know a general description of your home, and the square footage.”

While you can repay either at any moment, once you sell or refinance your home you must pay off the home equity loan or HELOC in full.

For more information, visit one of JD Bank’s convenient locations located across south Louisiana, or call 1-800-789-5159.