 |
|
|
|
|
|
|
| |
|
 |
| |
|
|
 Put your equity to work
Home equity lines of credit are versatile tools for taking control of your finances and making the most of the equity you've built in your home. In this section, you'll learn many ways you can use home equity loans and why Countrywide's choices give you extra advantages.
Ways to use home equity lines of credit
How equity loans can consolidate debt
and lower payments
How tax-deductible interest can mean greater savings
Countrywide Home Equity Line of Credit
vs. other lines of credit
Ways to use home equity lines of credit
| 1. |
Reduce monthly payments by consolidating debts
on credit cards and other consumer loans, lowering the interest rate, and
exchanging compound interest for simple interest |
| 2. |
Reduce your tax burden
by exchanging nondeductible interest (such as interest on credit cards and car
loans) for loan interest that may be fully tax deductible (see your tax advisor
for complete details) |
| 3. |
Get ready cash
for investment opportunities, unexpected purchases or emergencies as they come
up (lines of credit only) |
| 4. |
Take cash for a specific reason, such as remodeling,
college tuition, a new car, or a vacation |
Using equity loans to consolidate debt and lower your monthly payments
Here's an example of how you could use a Countrywide Home Equity Line of Credit
(HELOC) to pay off credit cards and other consumer debts. It's a great way to
give your monthly budget some relief.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Balance |
|
Annual Percentage |
|
Minimum Monthly Payment |
|
| Bank Card #1 |
|
$ 2,500 |
|
16.9% |
|
$ 63.38 |
|
| Bank Card #2 |
|
$ 4,500 |
|
16.9% |
|
$114.08 |
|
| Store Cards |
|
$ 3,000 |
|
19.8% |
|
$ 76.24 |
|
| Auto Loans |
|
$15,000 |
|
10.8% |
|
$324.64 |
|
| Personal Loans |
|
$10,000 |
|
11.8% |
|
$262.36 |
|
| Total |
|
$35,000 |
|
|
|
$840.70 |
|
| Countrywide $35,000 Home Equity Line of Credit |
|
| APR |
|
First Year Monthly Payment
(interest only)* |
|
First Year Monthly Payment Savings* |
|
Total First Year Savings |
|
| 10.375% |
|
$302.60 |
|
$530.24 |
|
$6,459.00 |
|
|
|
 BACK TO TOP
|
|
| |
|
|
*Payments and savings are during the 5 or 10 year interest-only payment period of a no-closing cost HELOC with 70% combined loan to value, and an interest rate of 10.375%. After the interest-only period, your payment converts to a variable principal and interest payment that is paid off over 15 additional years. Example assumes 28% tax bracket, no change in prime rate, is for information only, and is not a commitment to lend. See
HELOC Terms Summary for important terms on our most popular home equity lines.
How tax-deductible interest can mean greater savings
The interest on your home equity loan may be tax-deductible (see your tax
advisor). This example assumes a 28% tax bracket to show the annual savings
possible.
Potential first year tax savings on a
$35,000 loan balance
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Before Taxes |
|
After Taxes |
|
|
|
APR |
|
First Year Annual Finance Charge |
|
Effective Rate |
|
First-Year Tax Savings* |
|
| Credit Cards and Personal Loans |
|
18% |
|
$6,300 |
|
18% |
|
n/a |
|
| Home equity line of credit |
|
10.375% |
|
$3,630 |
|
7.47% |
|
$1,016 |
|
| Total First Year Savings with Countrywide Home Equity Line of Credit |
|
|
|
|
|
$2,670 |
|
|
|
$3,686 |
|
|
|
BACK TO TOP
|
|
| |
|
|
*Payments and savings are during the 5 or 10 year interest-only payment period of a no-closing cost HELOC with 70% combined loan to value, and an interest rate of 10.375%. After the interest-only period, your payment converts to a variable principal and interest payment that is paid off over 15 additional years. Example assumes 28% tax bracket, no change in prime rate, is for information only, and is not a commitment to lend. See
HELOC Terms Summary for important terms on our most popular home equity lines.
Countrywide Home Equity Line of Credit vs. other credit choices
Here are some important advantages to using a Countrywide Home Equity Line of
Credit.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Countrywide HELOC |
|
Credit Card |
|
Personal Loan |
|
Other HELOCs and Home Equity Loans |
|
| Higher Credit Limits |
|
|
Yes!
Our flexible guidelines often give you a larger credit line — and we use appraised value. Credit lines available from $15,000 to $500,000. |
|
|
|
|
No.
These unsecured loans usually have much lower credit limits. |
|
|
|
|
No.
These unsecured loans usually have much lower credit limits. |
|
|
|
|
Maybe.
More restrictions often mean a smaller credit line and less payment savings. Often use tax-assessed value (which can be dramatically lower). Many limit your credit line to $100,000 and maximum property value to $350,000. |
|
|
|
| Lower Payments |
|
|
Yes!
You can save up to 70% on your monthly payments. Interest-only options reduce monthly payments during the early years of loan, allowing flexible budget management. |
|
|
|
|
No.
You're typically required to pay 2% of the outstanding balance each month. (And you'd likely pay a small fortune in interest charges.) |
|
|
|
|
Maybe.
But shorter terms and higher rates mean less payment savings. |
|
|
|
|
Maybe.
Minimum payments often include principal reduction, and minimum balances may be required. |
|
|
|
| Interest That's up to 100% Tax Deductible (See your tax advisor.) |
|
|
Yes!
Lower your tax bill with interest that is usually tax deductible. |
|
|
|
|
No. |
|
|
|
|
No. |
|
|
|
|
Yes. |
|
|
|
| Cash When You Need It |
|
|
Yes!
Just write yourself a check for $250 or more. |
|
|
|
|
Sure...
and pay a hefty cash advance fee!! |
|
|
|
|
No. |
|
|
|
|
Maybe.
But watch out for cash advance fees and high minimum draw restrictions. |
|
|
|
| Credit Becomes Reusable Again as You Pay Your Balance |
|
|
Yes!
Your credit line is open for 5 or 10 years. |
|
|
|
|
Yes. |
|
|
|
|
No. |
|
|
|
|
Maybe. |
|
|
|
| Longer Terms |
|
|
Yes!
Up to 25 years. Your credit line is open for 5 or 10 years, then converts to a variable principal and interest payment that is paid off over 15 additional years. |
|
|
|
|
Yes.
But you're typically required to pay 2% of the outstanding balance each month, which may mean higher payments. |
|
|
|
|
Maybe.
Many are limited to 15 year loans. |
|
|
|
|
Maybe.
Many have shorter terms and consequently higher payments. |
|
|
|
|
|
BACK TO TOP
|
|
|
|
|
See
HELOC Terms Summary for important terms on our most popular home equity lines.
|
|
|
| |
|
| |
|
 |
|
Countrywide has a huge selection of loans built to suit specific needs of our customers. Our home loan experts are ready to help you find the loan that’s right for you! Contact us now to get a FREE, no obligation loan consultation:
|
|
|
|
1-800-825-4549 |
|
|
 |
Available 7 days/week |
|
|
Quick and easy process |
|
|
Low, up-to-the-minute rates available by phone |
|
|
|
 |
|
| |
|
|
|
|
|
|
| |
 Equal Housing Lender. © 2008 Countrywide Bank, FSB. Member FDIC. Trade/service marks are the property of Countrywide Financial Corporation, Countrywide Bank, FSB, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved.
Privacy & Security.
|
|
