Home Equity Loans

Using the equity in your home, choose between a home equity line of credit or a home equity loan based upon the loan structure that best fits your needs.

Both options give you the flexibility to borrow for anything - a new car, college tuition, a vacation, home improvement project, debt consolidation or any other need. Whichever you choose, Merchants Bank is here to make the process easy at rates that work for you.

Home Equity Line of Credit (HELOC) Benefits

Low interest rate with an introductory APR as low as 5.99% for the first 6 months and 8.25% APR after 6 months.*
As a HELOC is a revolving line of credit, you have the ability to conveniently access funds when you choose.
Potential tax advantages on the interest paid on a HELOC. Consult your tax advisor for more information.

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Home Equity Loan (Second Mortgage) Options

A Balloon Loan offers a variety of amortization schedules with flexible monthly payments to fit any budget.
An Installment Loan has a fixed repayment schedule over a certain length of time.
An Adjustable Rate Second Mortgage (ARM) offers an adjustable rate.
Second mortgages also offer potential tax advantages on interest paid. Consult your tax advisor for more information.

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Can I borrow more than the value of my home?

While some mortgage lenders offer loans that often will go as high as 125% of your home’s value, we don’t think it’s a good idea. Borrowing in that manner will make it difficult, if not impossible, to sell your home should you want, or need to move.

Can I deduct the interest on my taxes?

We’re not tax advisors, but the interest you pay on a Home Equity Loan or HELOC may be deductible on your federal tax return. The interest you pay on car loans, credit cards and almost all other loans definitely is not. We suggest you consult your tax advisor regarding if interest is deductible.

What is Loan-to-Value when applying for a Home Equity Loan?

Add the amount you want to borrow to the unpaid balance of your mortgage then divide that number by the appraised value of your home. The result will be a percentage that is referred to as the Loan-to-Value of your home. The lower the percentage, the lower your interest rate may be.

Loans subject to credit approval.

* As of January 10 2024, the Annual Percentage Rate on a home equity line of credit with an 80% or less loan-to-value and a credit score greater than or equal to 700 was 8.25%. This special offer has fixed-rate pricing as low as 5.99% APR for the first six months. Following that six-month period, the rate will become variable, subject to change, based on U.S. Bank, N.A., prime rate plus a margin that is determined based on the loan-to-value in your home and your credit score at the time of application. Current rates vary from 8.25% to 11.00% APR. Maximum possible APR is 17.65%. Minimum possible APR is 4.00%. An origination of 1% will apply and a $150 evaluation fee may apply, in addition, you are responsible for certain fees to third parties, such as appraisers, credit reporting firms and government agencies, which are generally from $30-$2,500. Following the first year, there will be an annual fee of $25. Offer available on new home equity lines of $10,000 or more only or on existing lines of credit with an increase of at least $10,000. Consult your tax advisor regarding the deductibility of interest expense. Property insurance will be required. Limited time offer.