TWO KINDS OF HOME EQUITY
You could borrow money with a home equity loan or home equity line of credit (HELOC). On the surface, the similarities between the two might make it challenging to decide which one to use for your situation. Both offer the same features:
| Criteria | Home Equity Line Of Credit | Home Equity Loan |
|---|---|---|
| Duration of need | On-going, open-ended, longer-term access | Specific one-time projects, pre-planned initiatives |
| Access to funds | Draw as you need it | Lump-sum amount |
| Payments | Option of paying interest only on what you use and/or making regular or periodic reductions to your principal balance. | A set monthly payment of principal and interest. |
| How long you plan to stay in your home | Shorter-term | Longer-term |
| Are there closing costs? | No closing costs | No closing costs |
| How much you can pay each month | Typically smaller monthly minimum payments if interest-only option is selected. | Depends on total borrowed and interest rates. |
| Monthly Payment | Will vary due to changes in interest rates | Fixed payment |
Scenario: You have recurring borrowing needs and have to access additional funds like you would on a credit card. A HELOC is flexible and often used either as a safety net or to cover unexpected expenses. Some features:
Call and ask our agent about these and more discount opportunities.
Some HELOCs allow interest-only payments during the draw period. Others require minimum payments of principal and interest. Clarify the details of your payment with your lender.
Once the draw period ends, you’ll have to repay the remaining balance on your HELOC, with principal and interest. You may be able to refinance some or all of the balance you owe on a variable-rate HELOC to a fixed-rate loan.
Scenario: You need a loan with a fixed rate locked in for the life of the loan. You want to budget knowing that your payments will always remain the same as you pay it off completely over a specific period of time.
Yes, our home equity loan rates are fixed for the entire loan term. Contact us to see which loan term works for you!
When applying for a home equity loan, documentation can vary significantly on what you will need to verify income and assets. Examples include paystubs & W2’s, tax returns (specifically if self-employed), pension/social security awards letters and bank statements.
Yes, you can pay off your home equity loan without any prepayment penalty. It’s important to note that any Kennebunk Savings home equity loans cannot be paid off through Kennebunk Savings HELOCs.
| Program | Interest Rate | APR |
|---|---|---|
| 15 Year Home Equity Loan | 6.625% | |
| Home Equity Line of Credit | 7.250% |
Last Updated: 09/18/2025
Click on the Rate for Important Loan Information. For additional rate information or more home loan options, please talk with one of our Mortgage Lenders.
