Home Equity Basics
More and more, smart consumers like you are borrowing against their home's equity as a way to:
- Consolidate debt
- Pay for home improvements
- Purchase automobiles
- Pay for education costs
- Pay for major purchases
The interest is usually tax-deductible* and it can even lower your monthly debt payments. DeepGreen
Bank lends up to 90% of your available equity, up to $200,000.
Home Equity Line Of Credit vs Home Equity Loan?
Both a home equity line of credit and a home equity loan are secured by the equity in your home. A home equity line of
credit works like any other revolving line of credit, and is very similar to a credit card. It's flexible which allows
a homeowner to write checks against the equity in his/her home on an
ongoing basis. And unlike a home equity loan, with a line of credit you pay interest only when you use your funds.
What is an APR?
APR stands for annual percentage rate. It is the annualized cost of credit, expressed as a percentage. The APR
calculation considers certain fees to reflect the cost of credit in addition to interest. Since Gecko Financial Services
does not charge any application fees, the APR and our posted interest rate are the same.
What is LTV?
LTV stands for loan-to-value, which is the ratio of total mortgage-related debt to the
property's value. For example, if your property is worth $200,000, you owe $140,000 on
the first mortgage and there's no second mortgage, the LTV ratio is 70%.
In this example, the maximum Gecko Financial Services home equity line of credit
amount could be up to $40,000 -- because Gecko Financial Services lends up to 90% ($180,000) of
the property value ($200,000), including the first mortgage and any other mortgage-related
debt ($140,000.)
Why Gecko Financial Services?
Gecko Financial Services believes in rewarding financially responsible consumers like you - simply because you've earned it. Our home equity line of credit is always at least .05% below the prime rate(1) -- the rate
that banks usually charge their most credit-worthy customers.
*Consult your tax advisor.
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