Home Equity Loan Options in Wisconsin & Minnesota

Home Equity Loan Options

At Forward Bank, we offer flexible home equity loan options for homeowners in Wisconsin and Minnesota, allowing you to tap into your home’s value for projects, debt consolidation, or other financial needs like sending a child to college. Whether you’re looking for a fixed-rate loan or a home equity line of credit (HELOC), we have solutions tailored to fit your goals.

Home Equity Loans

A home equity loan, often called a second mortgage, allows you to borrow a one-time lump sum using your home’s equity and repay it over a fixed term with a fixed interest rate.

This option may be right for you if you want:

• Predictable monthly payments
• A fixed interest rate for long-term stability
• Funds for a specific, one-time expense
• Competitive rates and flexible repayment terms

Home equity loans are a popular choice for homeowners who value certainty and structured repayment.

Home Equity Line of Credit (HELOC)

A Home Equity Line of Credit (HELOC) gives you access to a revolving line of credit that you can draw from as needed, making it ideal for ongoing or unpredictable expenses.

A HELOC offers:

• Flexible access to funds over time
• Interest charged only on the amount you borrow
• Competitive, typically variable interest rates
• Convenience for renovations, emergencies, or phased projects

A HELOC can be a smart option if your financial needs may change over time. (Consult your tax advisor to discuss potential tax benefits).

Home Equity Loan vs. HELOC: What’s the Difference?

Both home equity loans and HELOCs allow you to borrow against the equity you’ve built in your home, but they are designed for different financial needs and borrowing styles.

Home Equity Loan

• Receive a one-time lump sum of funds
• Repay the loan over a fixed term with a fixed interest rate
• Enjoy predictable monthly payments from start to finish
• Often ideal for large, one-time expenses like renovations or debt consolidation

Home Equity Line of Credit (HELOC)

• Access a revolving line of credit as needed
• Typically features a variable interest rate
• Pay interest only on the amount you borrow
• Well-suited for ongoing expenses or projects with changing costs

A home equity loan may be the better choice if you value stability and consistent payments, while a HELOC may be a better fit if you want flexibility and ongoing access to funds. A Forward Bank lender can help you compare options and choose the solution that best supports your financial goals.

Common Uses for Home Equity Loans and HELOCs

Home equity loans and HELOCs give homeowners a flexible way to borrow for important financial needs, often at lower interest rates than unsecured options. Common uses include:

• Home improvements and renovations: Upgrade kitchens, bathrooms, or living spaces, increase energy efficiency, or make repairs that can enhance your home’s long-term value.
• Debt consolidation: Combine higher-interest credit cards or personal loans into a single, more manageable payment with a potentially lower interest rate.
• Education expenses: Help cover tuition, fees, or other education-related costs for yourself or a family member.
• Emergency funds: Access funds for unexpected expenses such as medical bills, major repairs, or other financial surprises.
• Major life purchases: Use home equity to help finance large expenses like weddings, vehicle purchases, or other planned investments.

Using home equity may provide lower interest rates and more favorable terms than credit cards or other unsecured loans, making it a cost-effective borrowing option when used responsibly.

Moving Homeowners Forward

Navigating home equity loans and lines of credit can be challenging, but understanding your options simplifies the process. Our local team of mortgage lenders are here to guide you, ensuring you choose the best solution to make the most of the equity in home while accomplishing your financial goals.