Home Equity

Home Equity Loans in Arizona

Home equity loans are another type of mortgage MC&I offers to borrowers in all Arizona metro areas, including Phoenix, Tucson, Scottsdale, and Flagstaff. With Arizona home equity loans, homeowners can secure a low-interest loan by converting the equity they’ve built in their homes into cash. Equity refers to the difference between the current value of the home and the outstanding loans against the property. Read on to learn about the types of home equity loans MC&I issues and how home equity lines of credit differ from home equity loans.


Types of Arizona Home Equity Loans

Although home equity loans can be used for almost anything, here are MC&I’s three most popular home equity loan programs in Phoenix and other major Arizona cities:


Pool loans

An MC&I home equity loan can help you pay for the installation of a pool. Our pool loans are especially popular in the Phoenix, Tucson, and Scottsdale areas. To finance your pool, you may pursue a cash-out option on your first mortgage or take out a second mortgage depending on what makes the most sense for your situation


Landscape loans

With an Arizona home equity loan, you can purchase plants and trees for your yard or improve your hardscape. For example, you might install an outdoor kitchen or fireplace in your backyard with a home equity loan.


Remodeling and rehab loans.

If your house could use a few updates, you can take out a home equity loan to renovate, add on a new room, or just fund a small weekend home improvement project.

HELOC vs. Home Equity Loan

If you would like to turn your home equity into cash, MC&I gives you two options: a home equity loan or a home equity line of credit (HELOC). An Arizona home equity loan has a fixed rate and distributes the funds in a lump-sum payment up front. Borrowers then make fixed payments of principal and interest each month until the loan’s term expires. Usually, home equity loans have terms that range from 5-20 years. With both HELOCs and home equity loans, the amount you can borrow will depend on your loan to value (LTV) position.


By contrast, HELOCs work more like a credit card than a traditional Arizona mortgage loan. Borrowers receive special equity checks that they can use whenever and however they see fit. Borrowers can use a HELOC to take out a loan up to the maximum approved balance. With a HELOC, you only have to repay whatever portion of the approved limit that you use. In addition, your repayment options are often more flexible than with a standard home equity loan. Some lenders may allow you to make interest-only payments for a certain amount of time, for example.

Unlike traditional Arizona home equity loans, HELOCs have adjustable interest rates. Typically, HELOC rates are tied to the prime rate index, so your rates and payments will fluctuate over time. With most home equity lines of credit, borrowers can use the advance feature for 5-10 years, after which they must renew the equity line, pay off the loan, or convert the balance into a fixed-rate home equity loan. Keep in mind that your home still serves as collateral with a HELOC, so if you fail to repay the credit line as agreed, you could lose your home.R