Home Equity Loans

Home Equity loans are loans that are secured by the borrower's personal residence. There are two types of Home Equity Loans: Fixed rate/fixed term loans and Home Equity Line of Credit Loans.

• Fixed Rate Home Equity Loans
  These loans are written for a specific period of time. The interest rate is fixed for the entire term and the borrower pays off the loan in monthly installments. A mortgage is recorded to secure the collateral. The mortgage is satisfied and the lien removed when the loan has been repaid. Interest on these types of loans may be tax deductible. See your tax advisor.
• Home Equity Line of Credit
  A Home Equity Line of Credit is an open-end loan, using the borrower's equity in their residence as collateral for the loan. The rate charged for a Line of Credit is a variable rate based on an economic index, which will change any time there is a change in the index. Indiana First Banks uses is the Wall Street Journal Prime rate as its index. Contact one of our Loan Officers to apply or for more information.