A business line of credit can be as close as your home

Home Equity Lines of Credit

Do you require the financial resources of a national bank, but seek the flexibility found with a community bank? Whether you're building your next facility or developing commercial or residential properties, EverBank's Commercial Relationship Managers can help you get fast and customized lending decisions on your next project.

How can I be sure that using the equity in my home as collateral for a loan is right for me? And are there any associated risks I should be aware of?

A home equity line of credit lets you borrow money by using the equity in your home as collateral. They offer interest rates that are generally lower than most credit cards. A major benefit for you is that, in many cases, the interest payment on a home equity line of credit is tax deductible.² You can use this funding solution to consolidate your debt, renovate your home, pay for tuition, or major purchases. Home equity lines of credit can also be used as a ready source of funds to use on an as needed basis.

Since your home secures these loans, we feel it's important that you have a repayment plan in place. Like a first mortgage, a default on these loans could result in a loss of your home. Additionally, you should be aware that home equity lines of credit have variable interest rates generally based on the prime rate (as reported in The Wall Street Journal) so your monthly payments could fluctuate.

I'm interested in applying for a home equity line of credit, what's my next step?