Advertiser Disclosure

Reviews

Pinnacle Bank’s Review: Checking, Savings, CD and Money Market Accounts

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

Pinnacle Bank’s checking account options

Basic Checking (or Grizzlies or Titans Basic Checking)

This bare bones checking account has no minimum balance and any easy-to-avoid monthly fee, but doesn’t earn any interest.
  • Minimum opening deposit. $100.
  • Monthly account maintenance fee: $3 monthly fee is waived if you sign up for electronic statements.
  • ATM fee. No fee for use of Pinnacle Bank’s ATMs. Pinnacle Bank’s customer service says a $3 fee will be charged for use of non-Pinnacle Bank ATMs.
  • ATM fee refund. No refunds for out-of-network ATM fees.
  • Overdraft fee: $38. The bank does offer overdraft protection, with approval. This services allows you to link another Pinnacle Bank account of line of credit to your checking account in order to cover overdrafts with no fee or service charge.

Pinnacle Bank’s Basic Checking is designed for people who don’t want to monthly fees but don’t expect many perks in return. This checking account has no regular service fee as long as you sign up for electronic statements, but only the most basic are included, like online banking and a debit card. The Basic Checking account earns no interest on deposits and there is a charge for checks. Other services included by the bank include overdraft protection, with approval, and advice in cases of ID theft.

This account is also available as part of Pinnacle Bank’s partnerships with the NBA’s Memphis Grizzlies and the NFL’s Tennessee Titans. These basic checking accounts carry the same conditions, but you’ll get a special team-themed debit card. The Titans account also comes with special access to Titan’s special events and a 15% discount at the team’s physical and online stores. Terms may apply.

How to get Pinnacle Bank’s Basic Checking account

You can sign up for a Basic Checking account online. The bank says the process takes about ten minutes and requires basic information like a Social Security number, government-issued ID and home addresses for the past two years.

SEE DETAILS Secured

on Pinnacle Bank (TN)’s secure website

Access Checking

This account lets people who bank online and sign up for direct deposit skip the monthly fee, but it doesn’t pay any interest.
  • Minimum opening deposit. $100.
  • Monthly account maintenance fee: $8 monthly fee is waived if you sign up for electronic statements and direct deposit.
  • ATM fee. No fee for use of Pinnacle Bank’s ATMs. With this account, Pinnacle Bank’s customer service says four non-Pinnacle Bank’s ATM fees are waived each month, above that a $3 fee.
  • ATM fee refund. Four non-Pinnacle Bank’s ATM fees are refunded each month.
  • Overdraft fee: $38. The bank does offer overdraft protection, with approval. This services allows you to link another Pinnacle Bank account of line of credit to your checking account in order to cover overdrafts with no fee or service charge.

Pinnacle Bank’s Access Checking says this account is for those who “enjoy banking electronically.” You’ll get regional bank, online and mobile services, with no monthly fee if you use direct deposit and electronic statements. The bank will even refund four non-Pinnacle Bank’s ATM fees every month. The catch — this account earns no interest on deposits. You also have to pay checks. Other services included by the bank include overdraft protection, with approval, and advice in cases of ID theft.

You can sign up for a Access Checking account online. The bank says the process takes about ten minutes and requires basic information like a Social Security number, government-issued ID and home addresses for the past two years.

SEE DETAILS Secured

on Pinnacle Bank (TN)’s secure website

Balance Checking (Or Grizzlies or Titans Plus Checking)

Keep a $1,000 average balance and this checking account provides basic services and few extra perks per month without a monthly fee, but it earns zero interest.
  • Minimum opening deposit. $100.
  • Monthly account maintenance fee: $8 monthly fee is waived if you keep a $1000 average monthly balance.
  • ATM fee. With this account, Pinnacle Bank’s customer service says 4 non-Pinnacle Bank ATM fees are waived each month, above that a $3 fee.
  • ATM fee refund. Four non-Pinnacle Bank ATM fees are refunded each month.
  • Overdraft fee. $38. The bank does offer overdraft protection, with approval. This services allows you to link another Pinnacle Bank’s account of line of credit to your checking account in order to cover overdrafts with no fee or service charge.

The bank will waive the fees on this account as long as you keep a modest minimum average balance. In return, you’ll get a bit more than basic checking, in the form of refunded non-Pinnancle ATM fees for times a month. What you won’t get is any interest on deposits. Other services included by the bank include overdraft protection, with approval, and advice in cases of ID theft.

A similar account is available as part of Pinnacle Bank’s partnerships with the NBA’s Memphis Grizzlies and the NFL’s Tennessee. Referred to as Titans Plus Checking and Grizzlies Plus Checking, they carry the same conditions, but you’ll get a special team-themed debit card and first order ot checks free. The Titan’s checks are also team-themed). The Titans account also comes with special access to Titan’s special events and a 15% discount at the team’s physical and online stores. Terms may apply.

How to get Pinnacle Bank’s Balance Checking account

You can sign up for a Balance Checking account online. The bank says the process takes about 10 minutes and requires basic information like a Social Security number, government-issued ID and home addresses for the past two years.

SEE DETAILS Secured

on Pinnacle Bank (TN)’s secure website

Interest Checking

A solid checking account with a low-interest rate and a perk: The bank will refund all non-Pinnacle Bank’s ATMs fees within the United States. Watch out for a $12 monthly fee if your average balance falls below $2,500, though.
APYMinimum Balance to Earn APY
0.03%$0.01 to $49,999.99
0.03%$50,000 to $99,999.99
0.03%$100,000 and over
  • Minimum opening deposit. $100.
  • Monthly account maintenance fee: $12 monthly fee. The fee is waived if you keep a $2,500 average monthly balance in this account or 25,000 between multiple the bank’s accounts.
  • ATM fee. None
  • ATM fee refund. All non-Pinnacle Bank’s ATM fees are refunded each month.
  • Overdraft fee: $38 per item paid or returned, maximum 5 per day. The bank does offer overdraft protection, with approval. This service allows you to link another Pinnacle Bank line of credit to your checking account in order to cover overdrafts with no fee or service charge.

If you are the kind of person who reliably keeps a few thousand dollars in their checking account, there is a lot to like about the Interest Checking. With this account, the bank charges no ATM fees and refunds all fees on U.S. ATMS out of the network. Other services included free checks and cashier’s checks, along with overdraft protection (with approval) and advice in cases of ID theft.

Be careful not to have your average balance fall below the minimum though or you’ll get hit by a steep monthly fee.

This account offers a 0.03% APY, which isn’t bad for a traditional bank though you can do much better online. The bank does advertise some perks on terms of personal service, offering customer service phone lines which connect to a human and not a voicemail system, as well as regional branches in four states.

A similar account is available as part of the bank’s partnerships with the NBA’s Memphis Grizzlies and the NFL’s Tennessee. Referred to as Titans Premium Checking and Grizzlies Premium Checking, they carry the same conditions as Interest Checking, However, you’ll get a special team-themed debit card and a 20% discount off safety deposit boxes. The Titans’ checks are also team-themed). The Titans account also comes with special access to Titans special events and a 15% discount at the team’s physical and online stores. Terms may apply.

How to get Pinnacle Bank’s Interest Checking account

You can sign up for an Interest Checking account online. The bank says the process takes about ten minutes and requires basic information like a Social Security number, government-issued ID and home addresses for the past two years.

SEE DETAILS Secured

on Pinnacle Bank (TN)’s secure website

Member FDIC

Senior Checking

This account is for people over 55, earns tiered interest and has a lower bar for waiving the monthly fee, but also comes with fewer perks than some other accounts.
APYMinimum Balance to Earn APY
0%$0.01 ‐ $999.99
0.03%$1,000 and above
  • Minimum opening deposit. $100.
  • Monthly account maintenance fee: $10 monthly fee is waived if use direct deposit or keep an average monthly balance of $500.
  • ATM fee. None.
  • ATM fee refund. None with this account.
  • Overdraft fee. $38 per item paid or returned, maximum 5 per day. The bank does offer overdraft protection, with approval. This services allows you to link another Pinnacle Bank line of credit to your checking account in order to cover overdrafts with no fee or service charge.

This account is targeted at those 55 and over, but leaves something to be desired. The account earns interest on deposits, but only over a certain threshold. The bar for waiving the monthly fee is lower than the Interest Checking. Customers just need to sign up for direct deposits or keep an average monthly balance of $500. It also comes with free checks, but doesn’t include one of the best benefits of the Interest Checking account. Non-Pinnacle Bank ATM fees aren’t refunded with this account.

Those of any age (seniors or younger), can find an account elsewhere with a better interest rate and no minimum fee, often also reimbursing some ATM charges.
If you are 55 and over, you may decide to choose this bank because you prefer a local institution with branches. If so, this Senior Account makes sense only if you keep a monthly average below $2500. Otherwise, consider Interest Checking because it reimburses unlimited U.S. ATM fees per month and has no lower limit for paying interest on deposits.

How to get Pinnacle Bank’s Senior Checking account

You can sign up for a Senior Checking account online. The bank says the process takes about ten minutes and requires basic information like a Social Security number, government-issued ID and home addresses for the past two years.

SEE DETAILS Secured

on Pinnacle Bank (TN)’s secure website

Member FDIC

magnifying glass

How Pinnacle Bank’s checking accounts compare

This bank offers a wide range of checking accounts, but three of them – Basic, Access and Balance–earn no interest and charge fees (though the bar for waiving these fees isn’t that high). In comparison, several online banks now provide no-fee accounts, which pay interest on deposits, as well as reimbursing ATM fees from out of network providers. This is a big plus if you are looking for a no-fee account.

If you regularly keep more than $2,500 in your checking account, the Interest Checking account has some nice benefits. There is no monthly fee once you hit that minimum balance, and the bank itself charges no ATM fees within the United States while refunding ATM charges from outside. The interest rate isn’t as high as many of the online banks, but it as good or better than many traditional banks offer on checking accounts.

The bank prides itself on provided a local touch, something that may or may not be important to you. The bank says when you call any of its regional numbers for help, you can talk to a real person, not a voicemail system. Advice in cases of ID theft comes with all levels of accounts. The bank also offers branded accounts associated with the Tennessee Titans and the Memphis Grizzlies.

You can check out the competition with our list of the best checking accounts.

Pinnacle Bank’s savings account options

Vision Savings

This basic savings account which hardly earns any interest and charges a fee.
APYMinimum Balance to Earn APY
0.03%$0.01
  • Minimum opening deposit: $100
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: A $2 monthly will be charged if your average daily balance in this account falls below $500.
  • ATM fee: Free use of the bank’s ATMs. The bank’s customer service says a $3 fee will be charged for use of non-Pinnacle Bank ATMs.
  • ATM fee refund. None.
  • Overdraft fee. $38

This Vision Saving Account really doesn’t have much going for it. The interest rate is paltry and you can do better elsewhere. If deposits fall below $500, the bank charges a fee. The bank does offer unlimited free use of the bank’s ATMs for account holders and unlimited over-the-counter withdrawals or transfer at the bank’s branches. You can also tie it to your Pinnacle Bank checking account for overdraft protection.

Like other savings accounts, this account is subject to Federal Reserve Board Regulation D. This account limits you up to six certain transactions per month, including online banking transfers or automatic transfer to a third party.

How to get Pinnacle Bank’s Vision Savings account

You can sign up for a Vision Savings account online. The bank says the process takes about 10 minutes and requires basic information like a Social Security number, government-issued ID and home addresses for the past two years.

SEE DETAILS Secured

on Pinnacle Bank (TN)’s secure website

Member FDIC

magnifying glass

How Pinnacle Bank’s savings accounts compare

This bank only has one standard savings account, Vision Savings, and there isn’t much to offer. The interest rate is much lower than what you can find elsewhere. The primary benefit is the ease of access to your money, since the bank offers unlimited use of there ATMs and over-the-counter withdrawals and transfers.

See what interest rates and services are available with competitors on our list of the top savings accounts

Pinnacle Bank’s CD rates

This bank offers a wide range of CD options but you need to call the bank to learn about current rates.
  • Minimum opening deposit. $1000
  • Minimum balance amount to earn APY: Contact bank for details.
  • Early withdrawal penalty: Depends on terms of CD, call the bank to find out more.

This bank offers a variety of CD’s with different lengths, ranging from 30 days to five years. Generally the bank says it earns higher interest rates on longer CD and higher balances.

How to get Pinnacle Bank’s CDs

To get the specific rates on offer and to sign up, you will need to call the bank.

SEE DETAILS Secured

on Pinnacle Bank (TN)’s secure website

magnifying glass

How Pinnacle Bank’s CD rates compare

This bank doesn’t provide rates for their CDs online, though they do say they offer a variety of terms. Call the bank to find out more information. You may also consider checking out other competitors on our list of the best CD rates.

Pinnacle Bank’s money market account options

Outlook Money Market

This Money Market account makes moving your money easy with unlimited deposits and ATM withdrawals, but only earns a small rate of interest.
APYMinimum Balance to Earn APY
0.03%$0.01 to $4,999.99
0.03%$5,000 to $14,999.99
0.03%$15,000 and over
  • Minimum opening deposit: $100
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $5, waived if the average monthly balance remains above $2500 or if you have a combined monthly average balance of $15,000 between your Pinnacle Bank checkings and savings accounts or $150,000 with Pinnacle Asset Management.
  • ATM fee: Free use of Pinnacle Bank’s ATMs. The bank’s customer service says a $3 fee will be charged for use of non-Pinnacle Bank ATMs.
  • ATM fee refund: None.
  • Overdraft fee: $38

This Outlook Money Market account earns the same low rate of interest no matter how much money you put into it and it charges a monthly fee if you don’t meet the minimum balance. The rate offered on this account is also a low 0.03%.

The bank does make it easy to access this account, providing unlimited free deposits and withdrawals via the bank’s ATMs and over-the-counter at branches. The account can be used to protect a Pinnacle Bank checking account from overdrafts.

In accordance with Federal regulation, the bank limits certain types of transactions on this account to six per month. This includes automatic transfer or withdrawals to a third party or another account of yours, say by computer transfer or debit card. The bank will charge you $5 per for each third party payment by check, debit or similar order that violates these rules.

How to get Pinnacle Bank’s Outlook Money Market account

You can sign up for this account online. You will need to have valid ID, addresses covering the last two years and your social security number handy. You will also need to find the account from an existing U.S. savings or checking account.

SEE DETAILS Secured

on Pinnacle Bank (TN)’s secure website

Member FDIC

magnifying glass

How Pinnacle Bank’s money market accounts compare

Frankly, these Money Market Accounts just don’t pay much interest. Even if you are only putting a little bit of money in your savings account, you can get a better rate online. See some of the best money market accounts here. It only really makes sense to get one of these accounts if you want to use it as a link to an existing Pinnacle Bank checking account, to pad for overdrafts or transfer money back and forth easily.

Zenith Money Market

You have to put a lot of money into this tiered interest account before rates start to go higher.
APYMinimum Balance to Earn APY
0.03%$0.01 to $9,999.99
0.03%$10,000 to $24,999.99
0.03%$25,000 to $49,999.99
0.05%$50,000 to $99,999.99
0.08%$100,000 to $499,999.99
0.08%$500,000 and over
  • Minimum opening deposit: $100
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $10, waived if the average monthly balance remains above $10,000 or you keep a combined average monthly balance of $25,000 in the bank’s deposit accounts or you have $250,000 with Pinnacle Asset Management.
  • ATM fee: Free use of the bank’s ATMs. The bank’s customer service says a $3 fee will be charged for use of non-Pinnacle Bank ATMs.
  • ATM fee refund: None
  • Overdraft fee: $38

This account earns more interest the more money you keep in it, but you’ll need to put in a lot of cash before you qualify for the better rates.

The Zenith Money Market account also charges a monthly fee unless you keep a relatively high balance of funds in the account. The bank does make it easy to access your Zenith account, providing unlimited free deposits and withdrawals via the bank’s ATMs and over-the-counter at branches. The account can be used to protect a Pinnacle Bank Checking account from overdrafts.

In accordance with Federal regulation, the bank limits certain types of transactions on this account to six per month. This includes automatic transfer or withdrawals to a third party or another account of yours, say by computer transfer or debit card. The bank will charge you $5 per for each third party payment by check, debit or similar order that violates these rules.

You can sign up for this account online. You will need to have valid ID, addresses covering the last two years and your social security number handy. You will also need to find the account from an existing U.S. savings or checking account.

SEE DETAILS Secured

on Pinnacle Bank (TN)’s secure website

Member FDIC

Overall review of Pinnacle Bank’s banking products

This bank prides itself on offering good customer service and easy-to-access accounts, but many of the bank’s products offer little or no interest on deposits. Most of the appeal comes from its regional bank ethos. It boasts lots of branches and ATMs in Tennessee, Virginia, North and South Carolina, and real people answer the phones, not machines.

The best offering at this bank is the Interest Checking Account. With this account, the bank will refund any fees you are charged each month for use of non-Pinnacle Bank ATMs and you’ll get 0.03% APY on deposits, not the best around but not a bad rate for a brick and mortar bank. Just be sure to keep your balance above $2500 to avoid the high monthly fee. Though requirements for waiving fees for the Basic, Access and Balance checking accounts aren’t hard to meet, but these accounts pay no interest at all on deposits.

The Savings and Money Market options aren’t much to write home about. The interest rates are low. You can do better elsewhere. Many of the benefits of the bank’s checking services–convenience, personal service–are less of a benefit with low transaction savings accounts.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Advertiser Disclosure

Mortgage

Home Equity Loan vs. Home Equity Line of Credit

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

iStock

Looking to borrow against the equity in your home? Maybe you have heard the terms home equity loan and home equity line of credit (HELOC) before and wondered what the difference really is. This article will compare the two types of borrowing and take you through the pros and cons of each one.

Home equity loan vs. HELOC: What’s the difference?

Home equity loan. With a home equity loan, you borrow a lump sum of cash using the value in your home as collateral. The loan will have a fixed schedule for repayment, usually lasting between 5 and 15 years. They often have a fixed interest rate as well, though adjustable rate versions are available.

HELOC. A home equity line of credit, or HELOC, is an ongoing line of credit that’s backed by your home’s equity — think of it a bit like a credit card. Your bank will authorize a certain dollar amount (similar to a credit card’s credit limit) and period of time during which you can access the line of credit, known as the draw period. Within this time, you borrow only what you need as you need it, though some banks do set a minimum withdrawal. You can make interest-only payments only on the amount you choose to borrow or pay more to start contributing towards the principle.

Next comes the repayment period, where you can’t take out any new funds and need to start repaying the amount you’ve borrowed, if you have not already. Interest rates on HELOCs are variable and often pegged to the prime interest rate.

Comparing home equity loans and lines of credit

 

HELOC

Home equity loan

Interest rate

Variable

Fixed, but sometimes variable

Funds access

Withdraw funds as needed

Lump-sum disbursement

Funds use

No restrictions

No restrictions

Monthly payments

Varies, based on how much you withdraw and interest rate at the time

Fixed for the life of the loan

Closing costs

Yes, but not always

Yes

Collateral

Home equity

Home equity

The two types of borrowing do have two major things in common: They are backed by the equity in your home, and there are no restrictions on what you can do with the cash.

With both home equity loans and HELOCs, the maximum amount you can borrow varies depending on your credit and the lender, but generally tops out at 80% to 95% of the your home equity. To calculate your home equity, start with the valueof your house (from an appraisal, if available) and subtract the amount remaining on your loan. You can also use LendingTree’s home equity calculator to estimate how much you can borrow. (Disclosure: LendingTree is the parent company of MagnifyMoney.)

Since the loans are backed by your home equity, the interest rates are usually lower than for unsecured forms of credit like credit cards or personal loans.

It’s up to you what you do with the money from either type of loan. You can make improvements to your home, pay for a vacation or put your kids through college.

However, Brett Anderson, a certified financial planner and president of St. Croix Advisors, said it’s important to think carefully about borrowing against your home equity, which is likely one of your largest assets.

“Remember these are loans that need to be paid back. A home equity loan isn’t free money, even with these low interest rates,” he said.

Tax changes’ impact home equity loans and HELOCs

New laws have changed tax deductions related to home equity loans and HELOCs. From the 2018 tax year until 2026, the IRS says borrowers cannot deduct interest payments on these types of loans, “unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan.”

In addition, starting in 2018, taxpayers may only deduct interest on $750,000 of qualified loans, or $375,000 for a married taxpayer filing separately. If you have a HELOC or a home equity loan and a regular mortgage, this limit applies to the combined amount of both loans. This limit is lower than it was previously.

So for example, if you take a $100,000 home equity loan and spend $75,000 on a kitchen renovation and $25,000 paying off credit card debt, only 75% of your interest payments is tax-deductible.

Randy Key, home loan specialist at Churchill Mortgage, told MagnifyMoney he’s seen interest in home equity loans and HELOCs drop after the tax changes.

Benefits and risks of a home equity loan

Given the current economic environment of rising interest rates, one of the main benefits of a home equity loan is having a fixed interest rate for the term of the loan — you get a lump sum upfront and have the same steady payment, even if the Federal Reserve continues to hike rates. That makes a home equity loan easier to budget for, said Anderson.

A home equity loan does have some drawbacks. If you already have a mortgage, you’ll have to keep track of two loans and make two seperate payments every month. A home equity loan also has the same sort of closing costs as a regular mortgage. Those costs can take their toll, especially if you aren’t looking to borrow that much money, Key said.

The rate the lender offers you for a home equity loan depends on your credit score. If your score is under 700, you’ll pay a higher rate to compensate for the risk the bank feels it’s taking on, Key said.

Benefits and risks of a HELOC

A big advantage of a HELOC is the flexibility. You get to withdraw the cash when you need it and only pay interest on the amount you use — however, be aware that most lenders require a minimum withdrawal at the closing.

HELOCs can have lower upfront costs than home equity loans, with some lenders offering to pay for closing costs. Key said if you are willing to base your line of credit off the tax appraisal value of your house, most lenders will do a HELOC without a new appraisal.

The major downside of HELOCs is that they use a variable interest rate pegged to the prime rate, which is set to go even higher this year. This means if you have a HELOC, your interest payments are going to get bigger. You’ll also need a strong credit score to qualify; according to Key, a score around 650 is often required, though it depends on the lender.

Equifax data shows that interest in HELOCs is going down, which Key attributed to both the tax changes and the rising interest rates. He said many of his customers are choosing to refinance to combine an existing first mortgage with a HELOC into one loan.

“With a rising rate market, people are seeing that HELOC rate could be 1% higher next year and thinking, ‘I have to do something about this,’” he said.

Which loan type is right for you?

When choosing between a HELOC or a home equity loan, experts say it is important to consider why you need the money: Is it a set project or a variable need?

Going with a home equity loan instead of a line of credit is usually the best choice to pay for a specific plan, like remodeling a kitchen or buying a vacation house.

“[If] you have a purpose for these dollars today, and you know the amount you’ll need, a home equity loan might be a better alternative,” Anderson said.

A HELOC is generally a better choice if you need some added cash but not a fixed amount or fixed timeline. Key recommends them for customers looking to cover “a tight month in the budget or maybe they are investors who want to be able to tap money quickly.”

The third option: a cash-out refinance

If you are considering a home equity loan or a HELOC, you might want to look at a third option: a cash-out refinance.

A cash-out refinance is designed to improve on the terms of an existing mortgage and provide additional cash at the same time. You’ll be refinancing and taking equity out your home at the same time, leading to one new loan with a larger balance than your previous one.

A cash-out refinance is a good option if you need money and at the same time want to improve the terms of your current mortgage by securing a better interest rate or converting an adjustable-rate mortgage to a fixed-rate one. But be mindful of the fees involved, which can be high depending on the circumstances.

Key has recommended these to a lot of borrowers at the moment who need big chunk of cash for a project like a renovation or putting a pool. With interest rates heading higher, he said, if a borrower needs $100,000 to $300,000, “a HELOC is not a good place to park that much in debt.”

Closing thoughts

Any decision to borrow against the equity in your home should not be taken lightly. The overall volume of both home equity loans and HELOCs has declined since the 2008 financial crisis, when falling property prices burned some borrowers who had borrowed too much against the equity of their homes.

If you need cash and choose to use your home as collateral, a home equity loan is generally the best choice for financing a project with a set cost. A HELOC provides more flexible access to money, but rising interest rates will make these a more expensive choice in the coming year. It’s also worth considering a cash-out refinance, which could potentially improve the terms of your current mortgage while also giving you extra cash to spend.

LendingTree

SEE OFFERS Secured

on LendingTree’s secure website

NMLS #1136 Terms & Conditions Apply

Disclaimer: This article may contain links to LendingTree, which is the parent company of MagnifyMoney.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.