The equity that builds up in a house can be one of the greatest benefits of home ownership. You can tap into your home's equity — the difference between the home's fair market value and the outstanding mortgage or liens owed on your home — for virtually any purpose.
A home equity loan is great for major, one-time projects, such as debt consolidation.* A home equity line of credit may be best for a series of projects like home improvements. Both feature low rates, and the interest you pay could be tax deductible.**
Not sure which home equity product is better for you? Use the side-by-side comparison chart below to make an informed decision.
|Home Equity Line of Credit
||Home Equity Loan
|Interest may be tax deductible**
||Interest may be tax deductible**
|Low, variable interest rate
||Low, fixed interest rate
|You may be able to borrow up to 90%** of your home's equity.
||You may be able to borrow up to 90%** of your home's equity.
|Easy access to your credit line with a First Tennessee credit card
||Immediate funds in one convenient check
|Line of credit stays open
||Fixed monthly payments
|Interest only payments during draw period†
||You may opt for automatic payments from your checking account.
|No closing costs for lines over $25,000
||Flexible loan terms