There has to be a reason you decided to buy and not rent, and it’s definitely not the yard work. Your home truly is the best asset you have, and at First Mid, you can use the equity in your home to start something great!
How can First Mid Home Equity help me?
A First Mid Home Equity Loan or Home Equity Line of Credit (HELOC) can give you the funds needed to cover planned or unexpected expenses, and may be the answer to the following questions:
- How can I pay for my child’s education?
- How can I pay off my medical expenses?
- How can I finance my dream vacation?
- How can I finance my upcoming home improvement projects?
- How can I pay for a new car?
How much credit can you obtain from your home’s equity?
You can likely tap into up to 90% of your home’s value with a First Mid Home Equity Loan or HELOC. If you know the fair market value of your home, multiply that number by .90, then subtract how much you owe, including any existing mortgage or home equity loans. This will give you a good idea of how much credit may be available to you.
What is the difference between a Home Equity Loan and a Home Equity Line of Credit?
A Home Equity Loan provides you a lump sum of money dispersed in one payment. The loan is fully amortizing, and repaid in fixed monthly installments. This is ideal for any large, one-time expense.
A Home Equity Line of Credit establishes an approved amount for which you qualify, and allows you to access those funds when needed. The amount owed is based on the outstanding balance, so the payment amount changes month-to-month. As you repay the outstanding balance, you can replenish your available line of credit. This is ideal for ongoing expenses, and eliminates the need to reapply for financing each time you need to access the funds. An additional benefit is the Home Equity Line of Credit (HELOC) VISA credit card, which enables you to access your line of credit whenever you need it. Our HELOC credit card can be used at any ATM or Merchant that accepts VISA.
Both Home Equity Loans and HELOCs may offer tax benefits as the interest paid may be tax deductible.*
To learn more about the differences between a Home Equity Loan and a Home Equity Line of Credit, click here.
How can I set up automatic loan payments?
If you would like to set up an automatic loan payment, either from a First Mid deposit account or from an account at another financial institution, you can! Complete our Loan Payment EFT Authorization Form, sign it and either email or mail it back to us. It’s that simple!
Wanting more information?
For more information, fill out a Contact Us form or call us at 866-258-2311 (toll free) or 217-258-1515 and ask about our Home Equity program.*
*Subject to IRS rules and regulations. See your tax advisor for details. Home Equity Loans and HELOCs limited to owner occupied residences and subject to credit approval. Property insurance is required. Fair market value is based upon an acceptable current valuation report.