What is a home equity line of credit? And, more importantly, how do you choose the best one from the right lender? These are common homeowner questions, and — luckily — they come with simple answers.
A home equity line of credit, or HELOC, is similar to many types of borrowing, including home equity loans. But instead of getting a lump sum payment like with a home equity loan, homeowners receive a line of credit with a HELOC.
Common reasons for getting a HELOC include paying for home improvements, debt consolidation, a new car and other expenses. But for many borrowers, one of the main reasons is because they need money for an emergency or an immediate, important expense. And since financial flexibility is key to handling unplanned costs, TD Bank makes this a cornerstone of its HELOC.
But although gaining financial flexibility is important, understanding how a HELOC works is key. Perhaps the most crucial part of a HELOC, in terms of financial impact, is the difference between the draw period and the repayment period.
With a TD Bank HELOC, the draw period is the length of time when you can draw on your line of credit and pay just interest. Meanwhile, the repayment period begins at the end of the draw period. During this time, you have to pay back whatever amount of money you borrowed during the draw period and interest.
At the end of your HELOC’s draw period, you’re not limited to just repaying the HELOC — you can also refinance it. If you’re torn between repaying your loan versus refinancing, refinancing into a new TD Bank HELOC might be the smarter choice — especially if you have ongoing projects or expenses you need to fund.
TD Bank HELOC Review
TD Bank stands out when it comes to home equity loans and HELOCs, offering customers and homeowners in 15 states and Washington, DC, competitive rates and a few benefits not always found at competing lenders.
Besides boasting low rates on home equity lines of credit, TD Bank offers fixed-rate HELOC options in addition to variable-rate loans. Plus, both TD Bank’s fixed and variable rates stack up well with comparable lenders.
TD Bank also allows customers to take out a HELOC on their primary residence, second home or investment property. Keep in mind, however, that some TD Bank home equity lines of credit might come with standard fees, including a $99 origination fee and a $50 annual fee.
Still, thanks to its flexibility and low rates, a TD Bank HELOC proves to be a beneficial tool for many homeowners with different financial objectives.
TD Bank HELOC Pros
A TD Bank HELOC comes with a number of positive features. One of the most-cited benefits: its flexibility. In other words, you can use this HELOC as you need it — and for many different purposes.
For example, homeowners tend to use HELOCs mainly for home renovations. TD Bank’s HELOCs can be used for a number of home improvement projects, including major renovations and even energy-efficient upgrades. And, many of these home renovations can pay off big time down the line, as they increase your home’s value.
But you’re not limited to just home renovations with your TD Bank HELOC. You can also use it to consolidate your debt — and possibly deduct the interest come tax time — or make a major purchase, such as a car, education or a vacation. And if an emergency or any other unplanned expenses pop up, a TD Bank HELOC can give you access to the money you’ll need.
TD Bank’s fixed-rate options are another great advantage. Getting a HELOC with a variable rate gives you the option to lock in your rate and protects you against the effects of rising prime rates, which affect variable rates on home equity lines of credit.
Here are some other key features and benefits that TD Bank offers:
- There is a $25,000 minimum line required, but there is no minimum draw requirement.
- You can get a 0.25 percent interest rate discount if you have a TD Bank personal checking account.
- With a fixed-rate option, you can choose a fixed rate on your entire line of credit — or just a portion of it.
How to Get a TD Bank HELOC Today
You can easily apply for a TD Bank HELOC online by visiting the home equity line of credit page on TD Bank’s website. On the website, search HELOC rates based on your zip code. You can also find HELOC rates on a primary residence, second home and investment property.
In order to apply online, click on “Apply Now.” You’ll be directed to TD Bank’s home equity application process. Here, you’ll be taken through eight easy steps, each one addressing important details about your financial standing, including:
- Loan information
- Personal information
- Income and employment
- Personal net worth
- Property information
- Monthly expenses
- Closing location
If you have questions or need assistance during the online application process, you can call TD Bank’s Financial Solutions Group at 1-800-822-6761.
Whether you need to increase your home’s value through smart renovations or consolidate and get out of a debt faster, you can find a HELOC that fits your unique financial needs — all you need to do is a little bit of research. And thanks to the financial flexibility a TD Bank HELOC offers, this could be the solution you’ve been searching for.