PERSONAL

Home Equity

Whether you’re looking to renovate your home, consolidate debt, or invest in education, you may be able to use your home’s equity to help pay for major expenses. A Home Equity Line of Credit (HELOC) allows you to use your home as collateral to secure a specified total amount of revolving credit. Your credit limit is the maximum amount you may borrow at any one time.

HELOC Credit Limit Example

To determine your HELOC credit limit, start with a percentage of your home’s appraised value. For this example we used 80% of a home appraised at $250,000, or $200,000. Subtract from this the balance owed on your existing mortgage. In this example with a mortgage balance of $100,000, you may qualify for a $100,000 home equity line of credit.

Appraised home value $250,000
Percentage x 80%
Percentage of appraised value = $200,000
Less mortgage balance owed – $100,000
Estimated credit limit $100,000

In determining your approved credit limit, we also consider your income, outstanding debt, other financial obligations, and credit history.

To find out how much you may be eligible to borrow under a Home Equity Line of Credit, please contact your National Bank of Commerce Banking Representative.

Note: Loans and lines of credit are subject to approval. Consult your tax advisor for details on potential tax advantages.