Home Equity Loans and HELOCs
Unlock the potential of your home’s equity with a flexible financing solution designed to fit your life. At Farmers National Bank, we understand that your home is more than a place to live-it’s an investment. A Home Equity Line of Credit (HELOC} gives you the freedom to borrow against the equity you’ve built, providing a revolving line of credit for expenses big and small.
Whether you’re planning a major renovation, consolidating debt, or covering unexpected costs, a HELOC offers convenience, competitive rates, and peace of mind. Let us help you make the most of your home’s value.
What is a HELOC?
A Home Equity Line of Credit is a revolving credit line secured by your home’s equity. Unlike a traditional loan, a HELOC works much like a credit card: you can borrow, repay, and borrow again during the draw period. This flexibility makes HELOCs ideal for ongoing projects or expenses that occur over time.
Key Features of a HELOC:
- Flexible Access: Borrow only what you need, when you need it.
- Competitive Rates: Enjoy lower interest rates compared to unsecured loans.
- Revolving Credit: Funds become available again as you repay.
- Tax Advantages: Interest may be tax-deductible (consult your tax advisor}.
Why Choose Farmers National Bank for Your HELOC?
- Local Expertise: We know our community and understand your needs.
- Personalized Service: Our team works with you to find the best solution.
- Transparent Terms: No surprises-just clear, straightforward lending.
- Secure Online Access: Manage your HELOC anytime, anywhere.
HELOC vs. Home Equity Cash-Out: Which Is Right for You?
Both options let you tap into your home’s equity, but they serve different purposes. Here’s a quick comparison:
| Feature | HELOC | Home Equity Cash-Out |
|---|---|---|
| Structure | Revolving line of credit | Lump-sum loan |
| Best For | Ongoing expenses or projects | One-time large expense |
| Interest Rate | Fixed | Fixed |
| Repayment | $50.00 principal payment plus interest accrued during draw | Fixed monthly payments |
| Access to Funds | As needed during period | Full amount at closing |
Benefits of a HELOC
- Flexibility: Borrow as little or as much as you need.
- Lower Costs: $50.00 principal payment plus interest accrued on the amount you use.
- Convenience: Access funds through checks, online transfers, or debit card.
- Control: Use your line of credit for any purpose-home improvements, tuition, medical bills, or debt consolidation.
Amanda Geuns
Residential Real Estate Lender
Prophetstown office:
(815) 537-2348
amandag@farmersnationalbank.bank
NMLS# 515536
Please contact any of our local lenders to discuss a HELOC and other residential real estate options such as: construction loans, mortgage loans and balloon loans.
Jo Lea Holevoet
Residential Real Estate Lender
Geneseo Office:
(309) 944-0580
joH@farmersnationalbank.bank
NMLS#1843540
Frequently Asked Questions
Typically, you can borrow up to 80% of your home’s appraised value, minus your mortgage balance.
Our HELOCs have fixed rates for a 5-year term.
The draw period lasts 5 years, followed by a repayment period of 10-20 years.
Yes, there may be closing costs, but they are generally lower than those for a traditional mortgage.
Yes! From home improvements to debt consolidation, tuition, or emergency expenses, your HELOC is yours to use as you see fit.