Enable Accessibility
×
Close
Personal Online Banking
All personal banking clients, please enter your online credentials here:
e‑Treasury Business Banking
Log in
Safeguarding your online banking sessions is our top priority. For information about how you can help protect your online banking sessions, or if you need additional assistance with your e-Treasury log-in, please contact Client Support at [email protected] or 855.274.2800.

Download our e-Treasury Secure Browser

Business Online Banking
If you need assistance, please contact Client Services at [email protected] or 855.274.2800.
e‑Treasury
Log in
Safeguarding your online banking sessions is our top priority. For information about how you can help protect your online banking sessions, or if you need additional assistance with your e-Treasury log-in, please contact TM Service at [email protected] or 212.575.8020.


Download our e-Treasury Secure Browser

Download the Sterling e-Treasury Token Client


Business Online Banking
If you need assistance, please contact Client Services at [email protected] or 855.274.2800

For optimal viewing experience, please use a supported browser such as Chrome or Edge

Download Edge Download Chrome

How to make your home equity work for you

Published on May 13, 2020 | Jay Brennan

For most Americans, owning a home is part of the “American Dream.” It is also one of the largest expenses and biggest investments you can make in your life. It is very important to know your options and choose wisely when looking to finance your home or tap into the equity in your home. Here is a snapshot of the different types of mortgages and home equity products available to you as a homeowner or future homeowner.

Choose the right mortgage

Whether you’re buying your first home, or considering refinancing, it is important to know your options to see what the right fit is for you. The most common types of mortgages available are:

  • Fixed Rate Mortgage: This is the most common type of mortgage. It offers a fixed rate and payment for the life of the loan.
  • Adjustable Rate Mortgage (ARM): This offers a fixed rate, typically lower than the rates for a Fixed Rate Mortgage at a given time, but the fixed rate is only for a selected period, not the entire term. After that period expires, the rate can vary.
  • Jumbo Mortgage: This is for loan amounts exceeding the maximum conforming loan limits set annually by the Federal Housing Finance Agency (FHFA).

Can’t afford to put 20% down payment towards your purchase?

Don’t worry; there might be options to help you:  

  • 80/10/10: This allows qualified applicants to do a simultaneous Home Equity Loan or Line to finance up to 10% of the down payment (lenders may have a cap; Webster will allow up to $50,000). This allows a borrower to remain with a conventional product and avoid Private Mortgage Insurance (PMI), which may be required in other programs when the down payment is less than 20% of the purchase price.
  • Government Assisted Mortgage: One of these mortgages may be the right fit, as well. With support from Connecticut Housing Finance Authority (CHFA), Federal Housing Authority (FHA), and Veterans Administration (VA), you may qualify for one of these types of mortgages.  

Utilizing your home’s equity

If you have owned your home for some time, improved it, or had a significant down payment at time of purchase, you may have earned equity in your home. There are two major types of products that can help homeowners get access to their equity.

  • Home Equity Loan: This offers a fixed rate and payment for the selected term.
  • Home Equity Line of Credit: This offers a revolving line of credit that makes money available to a borrower for when or if they need it. Rates typically vary with the prime rate, and interest-only payments are usually all that is required during the draw period, which is typically the first ten years.

What’s right for you?

Determining if a home equity product is right for you and which one is the best fit has a lot to do with your specific needs. Typically, if you are looking to purchase or pay off a fixed amount, a home equity loan may be the best fit. If you are looking to secure funds for things that spread costs over time, are for a future need, or simply to prepare for a possible future need, a home equity line of credit might be the best fit. Many banks, including Webster, will give qualified applicants access to up to at least 80% of their homes value, if they otherwise qualify. A discussion with a trusted local banker will help to determine the right solution for you. For many homeowners, it may even be a combination of the two.

Rates are at historic lows

It’s no secret that rates for lending products like home equity loans, lines and mortgages are near historic lows. That won’t last forever, though. Now is the time to see if any of the available home lending solutions might be the right fit for you, including purchase programs to help anyone looking to become a homeowner. Please call 800-325-2424 or stop by your local Webster branch to see what solutions might be right for you and your family.

Compare your home lending options

Related Resources

Personal BankingArticles
Tips for planning a vacation
Daydreaming of islands and alohas, the wonder of wandering, or feeding your soul with flavors of your new favorite city? Travel is roaring back to life, and we’ve got you covered with tips for planning and cost saving ideas. Before you travel So much of what makes a trip a great trip depends on what […]
Personal BankingArticles
Understanding Overdrafts: Your Guide to Managing Your Finances Responsibly
Here are some helpful tips and information to educate you about how overdrafts work, how they can occur, and how to avoid them. What is an Overdraft? An overdraft occurs when you don’t have enough money in your account to cover a transaction, but the bank chooses to pay the transaction anyway. Why Does an […]
Personal BankingArticles
Five ways to make saving easy and automatic
When it comes to savings, studies show that once we start setting money aside, chances are we’ll leave it there. The hard part is getting started. So how can we get ourselves to save in the first place? Automate! By having money set aside automatically, we eliminate having to make the “choice” to save it. […]
Connect With Us
Learn more about Webster products, services and the communities we serve.
We’d love your feedback
×