If you have equity in your home and need some extra cash, a home equity line of credit could be your answer, said Rebecca Walker, senior vice president of mortgage and loan services for Midwest BankCentre.
“Many Americans have a lot of equity in their homes and have really low interest (rates), and they have things they’d like to improve in their homes, or they have kids in college and need extra funds to help pay for that. Or, maybe they have high-interest credit card debt that’s becoming overwhelming. A line of credit gives them the ability to access the equity in their home and pay off that higher credit card or use it for the holidays or whatever they need,” Walker said.
“(A line of credit) gives them the opportunity to access equity in their home without having to worry about touching their first mortgage. So many people have the lower rate and don’t want to interrupt that.
“There is a lot of flexibility and there’s the potential for some tax benefits with the home equity line of credit based on the interest paid on the loan.”
If someone gets a home equity line of credit through Midwest BankCentre and doesn’t use any of the available funds, the person doesn’t have to make payments, Walker said.
She said Midwest BankCentre offers an introductory interest rate on its home equity line of credit at 6.5 percent or a little lower. The introductory rate is for six months.
“After that, the rate fluctuates depending on the prime rate, which is 8.25 percent today, on Oct. 15,” she said.
Midwest BankCentre has 16 locations in the St. Louis area, including ones in Arnold, Crystal City, De Soto, Fenton and Imperial.
Those interested in the line of credit may contact their nearest branch.