Home Equity

Whether you're adding on, planning a vacation get-a-way or looking for a way to consolidate high interest debt, Rockford Bank & Trust offers a variety of home equity financing tailored to fit your specific needs. Use the comparison below to determine which financing option is right for you. Contact an Account Executive to learn more about our competitive rates and terms. 

 

Home Equity Loan Options

  HERO Home Equity Revolving Option Home Equity Loan
What's the difference between a HERO and Home Equity Loan? A home equity revolving option is a flexible line of credit which utilizes the equity in your home.

A home equity loan is a loan with an equal structure repayment schedule and a fixed maturity date that utilizes the equity in your home.

What are the Advantages? With the HERO, you can borrow money at anytime, anywhere, for any reason, up to your available credit limit. Your minimum monthly payment is the interest on your outstanding balance if your loan to value is 80% or less. You have equal monthly payments of a pre-determined amount based on your original loan and term.
Is my interest tax deductible? Tax deductibility is subject to IRS regulations. Please consult your tax advisor for more information. Tax deductibility is subject to IRS regulations. Please consult your tax advisor for more information.
What are the typical uses of each of these loans? Since the HERO allows you to borrow as your expenses occur, it can be used to finance everything from your child's education and home improvements to a family computer or an exotic vacation. There are no restrictions on what you purchase. The Home Equity Loan is primarily used for purchases requiring one lump sum. Often times it is used for debt consolidation or large purchases like a boat or car. Still, there are no restrictions on what you purchase.
If I need more money, do I need to reapply? No. Simply write a HERO check up to your available credit limit. Since funds are disbursed as a lump sum, you would need to reapply for additional money.
Is there an annual fee associated with this loan? No. No.
Is the rate fixed or variable? The HERO rate is variable. It is tied to the Prime Rate published in the Wall Street Journal. The Home Equity Loan features a fixed rate.

Rate and repayment terms vary on HERO's and Home Equity Loans based on various factors including Loan to Value and Credit score.