Third Federal Savings & Loan

Third Federal offers three different types of loan products for homeowners who want to use the equity in their homes to get some additional cash. Whether you’re looking for $10,000, or as much as $1,000,000, Third Federal has a loan product to suit your needs.

A home equity line of credit is a variable-rate loan with a draw period and a repayment plan. Home equity lines give you the flexibility to borrow additional funds up to your credit limit. Use your home equity line for whatever you need, whenever you need it. Accessing your funds is as easy as writing a check or using your debit card. You only pay interest on the money as it is borrowed. Once the money is paid back, you may use the funds again. The draw period is a timeframe (usually 5 to 10 years) in which you may borrow on the line and pay it back as many times as you like. You receive a bill each month based on your ourstanding balance for either the interest only or for a combination of principal and interest. When the draw period is over, the full balance may be due or a repayment schedule may be set up, depending on your lender. Home equity lines of credit are a great tool when you are uncertain of how much borrowing you will need, or you anticipate having to borrow more funds in the future or for projects like remodeling, that have multiple payments phased in over time.

Unlike a line of credit, a home equity loan is a one-time lump sum loan. It's a good home equity choice if you know the full amount of money needed and you don't anticipate having to borrow again in the future. You'll receive the entire amount of the loan upfront and pay interest and principal on that amount right from the start. Home equity loans typically run anywhere from 5 to 30 years, and you make regular monthly payments until the loan is paid off. And unlike a line of credit, home equity loans can be fixed or adjustable rates.

A cash-out refinance is a great way to finance major expenses like home improvements, tuition, or a new car. With a cash-out refinance, you get money back from the lender in excess of the amount you previously owed. Let's say you have a current mortgage balance of $100,000. If you originate a new cash-out refinance for $130,000, you'll get $30,000 in cash at closing. Plus, borrowing against the value of your home usually mean you'll get a lower (and often tax-deductible) interest rate, compared to other forms of borrowing.