Home Equity Loans & Second Mortgages
At Mid American, we offer two home equity borrowing options: a lump-sum loan or access to a line of credit whenever you need it. The interest paid on either option may be tax-deductible.
Equity Access VISA®
Access your line of credit through a VISA® card or with checks. You’ll have easy access to the funds when you need them. You can also get a better interest rate if your paycheck is directly deposited into a Mid American checking account. Equity Access VISA® variable rate is tied to the Wall Street Journal Prime rate, plus certain percentage points.
Traditional Second Mortgage
For specific, large expenses — such as consolidating debt — this fixed-term, fixed-rate, closed-end loan would be your best option. You’ll get a lump-sum payment and then make the same monthly payment at a fixed interest rate. If your home is paid off, you can still use this loan to access your equity — it’s simply called a Home Equity Loan in that case.
What’s my Home’s Equity?
To estimate your equity, use the appraised value determined by your county. Your loan application process will include a separate appraisal to confirm your home's value.
$150,000 – Appraised value of home
$135,000 – This is 90% of your appraised value
-50,000 – Amount owed on mortgage
$85,000 – Available equity