up
x
Loading
up

CORPORATE OFFICE

Level One Bank

32991 Hamilton Ct.
Farmington Hills, MI 48334
Phone: 248-737-0300

Details

MORTGAGE LOAN CENTER

Level One Bank

1328 S Main Street
Ann Arbor, MI 48104
Phone: 734-213-1515

Details
BANKING CENTERS

ANN ARBOR

Level One Bank

195 N. Maple Road
Ann Arbor, MI 48103
Phone: 734-794-5225

Details

BIRMINGHAM

Level One Bank

1712 West Maple Road
Birmingham, MI 48009
Phone: 248-723-4800

Details

BLOOMFIELD

Level One Bank

6450 Telegraph Road
Bloomfield Hills, MI 48301
Phone: 248-406-8905

Details

BLOOMFIELD

Level One Bank

37100 Woodward Avenue
Bloomfield Hills, MI 48304
Phone: 248-530-7401

Details

DETROIT

Level One Bank

1420 Washington Boulevard
Detroit, MI 48226
Phone: 313-309-9980

Details

FARMINGTON HILLS

Level One Bank

30095 Northwestern Highway
Farmington Hills, MI 48334
Phone: 248-865-1300

Details

FARMINGTON HILLS

Level One Bank

30201 Orchard Lake Road
Farmington Hills, MI 48334
Phone: 248-737-1110

Details

FERNDALE

Level One Bank

22635 Woodward Avenue
Ferndale, MI 48220
Phone: 248-414-6500

Details

Grand Rapids

Level One Bank

2355 Burton St. SE
Grand Rapids, MI 49506
Phone: 616-827-4400

Details

NORTHVILLE

Level One Bank

20550 Haggerty Road
Northville, MI 48167
Phone: 248-380-6590

Details

NOVI

Level One Bank

44350 W. 12 Mile Road
Novi, MI 48377
Phone: 248-735-1000

Details

STERLING HEIGHTS

Level One Bank

43683 Schoenherr Road
Sterling Heights, MI 48313
Phone: 586-412-1800

Details

Online Services

Login to Your Account

Login

Blog

Thinking About a Home Equity Line of Credit (HELOC)?

Posted on: May 23, 2019

5 Facts You Should Know Before Approaching Banks in Michigan

Father with sonAs a homeowner, you may have heard about home equity loans or a home equity line of credit (HELOC). Each uses your home as collateral to utilize the available equity; it is a second mortgage on your home, or in some cases a first, if you do not have an existing mortgage.

A HELOC may be more convenient and cost-effective than other types of loans.  Here are 5 facts explaining how:

1) A Home Equity Line of Credit is a Flexible Loan

Unlike a fixed amount home equity loan in which you take a lump sum of money upfront and repay the bank in monthly payments over time, a HELOC acts more like a credit card. You’re approved for a maximum amount of credit, then borrow what you need and put the funds toward significant expenses like home improvement projects, medical fees, or college tuition. And like a credit card, you have the ability to re-access the funds up to the line amount approved by your bank.

2) A HELOC has a Lower Interest Rate than a Credit Card

By using your home as collateral for the HELOC, you’ll usually pay less interest to borrow money. Monthly repayments are low because many banks in Michigan offer the option to make interest-only payments and repay the principal amount after a set term; and you only pay interest on the amount you’ve borrowed.

Most HELOC loans have a variable interest rate based on the prime rate, meaning the interest you pay may increase or decrease as the Federal government changes the prime interest rate.

3) When a HELOC is Used for Home Improvements, Interest is Tax Deductible

Although revisions to the U.S. tax laws affected deductions, interest remains deductible for HELOC funded home-improvement projects. If you use HELOC funds for remodeling or home additions, be sure to log your expenses to capture the full deduction at year-end.

The tax code does limit the amount of allowable interest and combines mortgage debt with home equity debt. The updated law allows interest deductions on total home debt up to $750,000 if you’re single or married and filing a joint return. Consult your tax advisor to determine if you may be eligible for a tax deduction.

4) Some Banks in Michigan (and across the U.S.) May Lend Up to 90% of Your Home’s Value

Home equity loans typically restrict borrowing to 80 percent or less of your property value. When applying for a HELOC through a Michigan bank, check with the lender to determine the lending limit. Level One Bank, for example, may offer HELOC loans up to 90 percent of your property’s appraised value if you meet specific qualifications. Contact a member of our Mortgage team to learn more.

5) Online Technology Makes HELOC Loans More Accessible

After a recent survey from J.D. Power & Associates highlighted Michigan banks have responded. Now, applying, making payments, and reviewing HELOC loan information is possible through most online and mobile banking platforms.


Father with sonAre you thinking about enhancing your home’s kitchen or outdoor patio as Michigan’s weather improves? Whether you’re looking to consolidate some debt, pay for college tuition, or book that trip to Europe, a home equity line of credit is useful in many ways, including turning your dreams into reality!

Talk with the team at Level One Bank to learn if a home equity line of credit is the right solution for you. We’re the Michigan bank committed to helping you realize your passions.

“Do something today that your future self will thank you for” – Brett Wilson

Posted in: Michigan Bank, Your Home

Search Blog

Need help?

Contact our team of financial professionals to learn more about our products and services.


24/7 Customer Support

Call or chat with a real person. Nights, weekends and most holidays.

Thank you for visiting https://www.levelonebank.com/Resources/About-Us/Blog
footer icon footer icon