Home Equity

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Compare a Fixed Home Equity Loan VS a Home Equity Line of Credit

Feature	Fixed Home Equity Loan	Home Equity Line of Credit (HELOC)
Loan Type	One time lump sum	Revolving line of credit
Interest Rate	Fixed rate	Variable rate (adjusts with the New York Prime rate)
Monthly Payments	Fixed monthly payments	Vary based on balance and rate
Loan Amount	Up to 75%-80% of your home’s appraised value (including existing mortgage)
Closing Costs	Can be rolled into the loan or deducted from your loan proceeds; standard fees include recording, flood, title and appraisal/evaluation
Rate Discount	Receive a 0.25% rate discount for auto pay from a United Bank account

Which One is Right for You?

Choose a Fixed Home Equity Loan if you:	Choose a HELOC if you:
Prefer predictable, fixed monthly payments Know exactly how much you need to borrow Are financing a one-time project or expense	Want flexibility to borrow as needed over time Are unsure of your total costs upfront Prefer to pay interest only on what you use during the draw period

Still not sure which is the best option for you, ask yourself these questions:

What is the purpose of the loan? If you know exactly how much you need to borrow and how you’ll use it, a fixed home equity loan is a good choice. If you're uncertain about the amount or when you'll need the funds, a HELOC offers more flexibility. It gives you ongoing access to cash during the draw period, allowing you to borrow, repay, and borrow again as needed.

Do you plan to pay it off quickly or over time? If you plan to pay off the loan quickly, a HELOC might be more suitable. But if you expect to pay it down gradually, a fixed home equity loan may be the better option due to its structured repayment schedule.

When do you need the money? If you need funds right away, a fixed loan may be best. If you don’t need the money immediately but want access when the time comes, a HELOC gives you that flexibility.

Are you on a fixed income or able to manage a variable budget? A fixed home equity loan may be more appropriate if you’re on a fixed income and prefer predictable monthly payments. A HELOC can work well if you’re disciplined with your spending and can manage variable payments.

Do you need to keep the monthly payment low at first? A HELOC may be right for you if you want lower initial payments, since it allows interest-only payments during the draw period. With a fixed loan, you’ll be making full principal and interest payments from the start.