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Home Equity Line of Credit in Arizona

Residents of Arizona enjoy a great standard of living in one of the most serene climates in the country. Home values are beginning to rise, meaning that many homeowners are now realizing that they have a great deal of equity built up where just a few years ago there was little. This is, of course, great news. Since one never knows when a sudden need for cash will arise, having a home equity line of credit available is certainly a handy part of the financial portfolio to have. Such lines of credit are made relatively easy to obtain given the number of financial institutions in Arizona offering them.

Some Benefits of a Home Equity Line of Credit

home equityGiven its relatively low interest rate and tax deductible status, there are actually quite a few benefits of maintaining a home equity line of credit. Similar to a credit card, one does not actually have to use the line of credit in order for it to remain active. Once approved, the amount will sit as available within your financial portfolio until you need it. Until that point, you will not need to pay anything to maintain it. Once you do need some quick cash, however, it is there to be withdrawn. That is all there is to it.

One of the main advantages of a home equity line of credit Arizona is the prospect of debt consolidation. While it it true that this type of loan carries a higher interest rate than a typical mortgage, it is still much lower than most credit card companies or other short term loan providers. Because of that, a common use of the home equity line of credit is to consolidate some debt into a more manageable monthly payment. The best part of this is that the interest you do pay on a home equity line of credit is tax deductible as long as the amount of the loan is less than $50,000.

How To Obtain A Home Equity Line of Credit in Arizona

Obtaining a home equity line of credit in Arizona is made easy considering the number of banks that offer a simple application process. The first step is, naturally, to own a home that has a fair bit of equity built up in it. Since home values are beginning to spring back in many areas of the state, it is quite possible that a mortgage that was under water a few years ago has now righted its own course. Assuming you have a decent credit rating, your application will likely be viewed favorably. Good credit is generally a requirement of being approved for a loan of this nature.

arizonaArizona has a number of major national and state banks offering equity lines of credit. There are also a number of credit unions that make these loans available to their members. Current interest rates range from a low of 4.25% at National Bank of Arizona up to 5.375% at Wells Fargo. Other financial institutions offering home equity lines of credit in Arizona include:

  • Bank of America
  • Arizona Federal Credit Union
  • Navy Federal Credit Union
  • JP Morgan Chase Bank
  • Citizens Equity First

This is just a short list of the many financial institutions offering this type of loan throughout the state. If you are interested in pursing this type of credit line, you will want to compare terms and rates at a number of banks and credit unions before making your final decision. Keep in mind that some plans offer interest only payments for a certain term if that is what you are looking for.