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Home Equity Loans

Home Equity Loan (HELOAN)

A home equity loan is a lump sum loan, based on your home's equity, with a set monthly payment. A home equity loan may be right for you if you prefer the stability of a fixed rate loan with a set monthly payment over a fixed term. With a home equity loan, you get the entire amount up front, which is good for large single investments or expenses. Enjoy:

  • Competitive fixed rates
  • Secured by the equity in your home
  • Loan amount is based upon a percentage of your LTV (loan-to-value) for qualified borrowers
  • Distributed in one lump sum
  • Payment options with a variety of terms
  • Interest may be tax deductible (consult your tax adviser)

Save Thousands in Interest Charges with Debt Consolidation

If you have credit card or other loan debt, consolidating debt with a loan may be the solution for you. With a home equity loan, you can consolidate all your higher-interest debt into one simple, lower monthly payment, potentially saving you thousands in interest charges over the term of the loan. Plus, the interest you pay may be tax deductible.*

Here’s a typical example of how a loan can lower your monthly payments and save thousands of dollars:

Sample current balances elsewhere

  Balance APR Payment Term
Credit Card #1 $5,500 21% $148.79 5 Years
Credit Card #2 $2,500 19% $91.64 3 Years
Store Card $2,000 17% $71.31 3 Years
Total Monthly Payments     $311.74  
Total Payments Over Life of Loans     $14,793.60  

Refinanced with a First Merchants HELOAN

  Balance APR** Payment Term
Loan Amount $10,000 4.46% $186.24 5 Years
Monthly Savings     $125.50  
Annual Savings (first 3 years)     $1,506.00  
Total Payments Over Life of Loan     $11,174.40  

**4.46% APR (Annual Percentage Rate) is based on 80% Loan to Value, 700 credit score and includes a $50 processing fee.  The $186.24 monthly payment is based on $10,000 financed for 5 years with a fixed rate of 4.46%. 

Lower your monthly payment by hundreds! This example shows over a 21% savings.

Consolidating debt is often one of the smartest financial solutions, but it is also important to honestly examine your budgetary or spending habits to identify and, as needed, correct habits that may contribute to debt accumulation.

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