A home equity loan is usually a second mortgage loan that uses your home as collateral. The funds that are received at closing are disbursed in a lump sum and amortized over the life of the loan. The proceeds can be used for anything that the borrower chooses. The equity of your home is the market value of a home minus any debt on the home.

The reason for this is simple! The interest on a home equity loan is usually tax deductible whereas the interest you pay on credit cards, student loans, and personal or auto loans is not. Equity loans are one of the smartest and most cost-effective ways to borrow. And, because these loans are secured by your home, they are often available at a lower interest rate than other types of credit.

The State of Texas limits equity loans to 80% total loan of the market value of your home and the borrower is limited to one equity loan per year. For example, if your home is worth $100,000, and you have a mortgage balance for $50,000, you may be eligible to borrow as much as $30,000.

With a Pilgrim Bank Home Equity Loan:

• You receive all of your money at closing
• You make regular monthly installment payments
• The minimum loan amount is $15,000
• The maximum repayment term is 15 years
• There are limited fees and documentation
• Quick closings are possible