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People working on home improvements paid for with their Century Bank low rate home equity line of credit (heloc)


Home Equity Lines

Put your home equity to work

Century Bank’s home equity line of credit (HELOC) is a smart way to finance your big plans – whatever they may be. Because we’re family run, we can make loan decisions quickly — so you can start living your dream faster. With our great low rates and flexible terms, you have fast and easy access to cash. 
We know learning the ins and outs of home equity can be confusing. Let us explain the basics:
• Familiarize yourself with the application process Learn More
• Discover the best way to finance home improvements Learn More
• Save money by consolidating debt at a lower interest rate Learn More
• Finance your child’s college education Learn More

What you need for a HELOC

Our experienced team is here to guide you through the process.
This is what the HELOC application process at Century Bank looks like:
  1. Complete an application 
  2. A Borrowing Specialist will contact you to discuss your application and answer any questions you may have
  3. We’ll send you a welcome package and initial disclosures for you to sign and return
  4. Depending on your loan details, we may order an appraisal from a licensed appraiser who is familiar with home values in your area. This will help determine how much equity you have
  5. Once your loan is approved, your Borrowing Specialist will schedule your loan closing
  6. Use the money for whatever you dream!

What home equity is

Home equity is the difference between what your home could sell for, or the assessed value, less what you owe on the mortgage. As you make mortgage payments, the equity in your home builds. If you’ve lived in your home for several years, now may be a great time to tap into your home’s equity. How do you make the equity in your home increase? It’s as simple as paying down the principal balance on your mortgage and/or seeing an increase in market value of your home over time.
For example, if the tax-assessed value of your primary residence is $400,000 and you owe $100,000 on your mortgage, you would have $300,000 in home equity. However, this doesn’t mean you can tap $300,000. This is because like all financial institutions, Century Bank considers a loan-to-value ratio (LTV). At Century Bank, you can borrow up to 75% of your home tax-assessed value. In this scenario, you’d take $400,000 and multiply it by .75 to get an LTV of $300,000. If you subtract the $100,000 for your mortgage, you’ll get $200,000 – the maximum amount you might be able to borrow.
Calculator iconHow much can you borrow? Get an estimate with our home equity calculator!
HELOC is a revolving line of credit that allows you to borrow as much as you need, anytime you need it, up to your available credit limit. With a HELOC you are required to only make monthly interest payments, you choose when and how much principal you pay. HELOCs are a great option for home renovations that may increase the value of your home.

Utilize your home equity for remodeling

If you’re like many homeowners, you either bought your property knowing it needed a little work or your tastes have changed over time. Century Bank is here to finance your home renovation projects so you can live comfortably in your dream home.

Taking out a HELOC for home improvements may be one of the wisest investments you make. That is because you could be borrowing money to increase the market value of your home and create a better living environment for yourself. Projects like installing new garage doors, replacing siding and minor kitchen remodels are some projects homeowners are most-likely to recoup their costs, according to Remodeling’s Cost vs. Value Report.

To help ensure you get the biggest return on investment (ROI) possible, there are a few things to keep in mind. Start off by creating a realistic budget so you don’t overborrow. You’ll need to shop around not just for materials, but also for contractors. Some home improvement projects are done out of necessity, such as driveway or roof replacement. Other renovations, like remodeling a bathroom, may be more for comfort. If your project falls into the latter category and you are planning on reselling your home, remember that personal taste does vary. If you select cupboards and countertops in trendy materials, your resale value may be affected.

Get a HELOC for debt consolidation

Many people turn to credit cards in a pinch. Whether it be to pay medical bills, an emergency car repair, or that last semester of college, charging expenses can seem like the only solution. Credit card interest rates can be high- really high. It’s not uncommon for credit cards to have double-digit interest rates whereas interest for a HELOC can be considerably less. If you have built up equity in your home and have your finances under control, now may be the time to pay off your high-interest credit card debt with a HELOC.

Calculator iconHow much will your monthly line payment be? Use our line payment calculator!

Use your home equity to pay for college

The joy and excitement of having your child accepted to college can be a very exciting – yet financially stressful time for the entire family. When federal student loans aren’t enough to cover tuition, many families turn to private student loans to fill the gap. Using the equity in your home to pay for college may be the wiser solution.
Federal student loans disbursed on or after July 1, 2019 and before July 1, 2020 have interest rates ranging from 4.53% to 7.08% depending on loan type, according to Federal Student Aid. Private student loan interest rates can soar into the double digits. HELOCs may be obtained at lower interest rates. If you have multiple children attending college at the same time for four years each, you can easily see how the savings in interest will really add up. Another thing to keep in mind is the amount of time you’ll have to pay back your loan. The Direct PLUS Loan, for example, generally has to be repaid within 10 to 25 years, according to Federal Student Aid. Having a longer period of time to pay back your loan can also result in lower monthly payments.

Improve your home. Conserve energy. Save money.

We want to help you stay comfortable in your home while saving energy and lowering bills with an interest-free HEAT Loan from Mass Save. The HEAT Loan program features 0% Annual Percentage Rate (APR) loans of up to $25,000** for energy-efficient home improvements.


FAQs

Q: How much money can I take out with a home equity line of credit?
A: At Century Bank, you may be able to get a loan amount not to exceed 75% of the tax-assessed value for owner occupied and up to 65% of the tax-assessed value for second homes. 
Q: What is assessed value?
A: Assessed value is the valuation placed on a property by a public tax assessor.
Q: Is the interest paid on a home equity loan tax-deductible?
A: It depends on the use of the loan. According a 2019 IRS press release, interest paid on home equity loans is tax deductible if it’s used to buy, build or improve a home. Other uses, such as to pay off credit card debt, is not. Each person’s situation is different, that is why we recommend you consult a tax professional.