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 |
|Apply Now ||Apply Now |
|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|
|Learn More ||Learn More |