State Farm offers home equity loans with low interestrates and a high loan-to-value ratio. Loan amounts start as low as $10,000.
State Farm offers home equity loans with competitive APRs as low as 4.99%,and a convenient fixed monthly payment schedule. There are no application fees and interest may be tax deductible,though you will need to check with your tax advisor. Seniors can choose the payment schedule they want for loan repayment.
State Farm home equity loans can help a senior pay for home improvements, medical expenses, or other major purchases. Home equity loans can also be used to refinance an existing home equity line.
Fees Will I pay initial,annual, or other fees? | No application fees, but other fees may apply |
Loan amount What are the minimum and maximum loans offered? | $10,000-$500,000 |
Repayment period How long will I have to repay the loan? | Repayment periods vary |
Contract obligation What will my obligations include? | The loan must be repaid in full |
Interest rate discount Are any discounts offered on interest rates? | No discounts are mentioned, but check with an agent to be sure |
Interest rate type Variable or fixed interest rate? | Fixed |
Line of credit Is a home equity line of credit offered? | Yes |
Interest rates What annual percentage rates are offered? | APRs start at 4.99% but can vary; check with State Farm |
Cost Monthly fee | Depends on the size of your loan |
Customer Support Ease of access | You can contact customer support online or by phone |
Ease How easy to put to use? | It’s easy to apply online or by phone |
Cancellation Cost or difficulty to cancel? | Loans must be repaid in full |
State Farm offers interest rates as low as 4.99%,and seniors who have built up a lot of equity in their homesare ideal candidates for these loans. When interest rates are low, such as with State Farm, seniors can capitalize on home equity to pay for large expenses and use the loan much like an insurance policy.
However, seniors who are retired or have low credit scoresmay find it challenging to qualify for a loan.Seniors with age-related cognitive and vision issues may also find it difficult to interact with the State Farm website to apply for a loan. If this is your situation, it may be wise to ask a family member to help you apply.
A loan from State Farm is a good option for seniors who are looking to obtain money for an important medical expense, but seniors with a limited life expectancy may want to opt for a shorter repayment period, or work with a financial planner to make sure the debt can be paid off eventually. For seniors with health problems and a steady income, State Farm home equity loans are a good option. However, seniors with escalating health problems can face foreclosure on their home if monthly payments are not made.
Seniors in all states of health should work with a financial planner to ensure that they will be able to make all State Farm home equity loan payments in a timely fashion.
Pros:
Cons:
Bottom Line:
State Farm offers home equity loans without application fees. These loans can help seniors make improvements to their homes, pay for medical expenses, or pay for other major purchases.State Farm home equity loans boast a competitive APR as low as 4.99% in some cases, and a convenient fixed monthly payment schedule.
State Farm was the recipient of the Corporate Social Responsibility Award from the Financial Services Roundtable in 2016 and 2017.For seniors who are looking for a home equity loan with no application fees and a low fixed interest rate, State Farm may be a good option.
Frequently Asked Questions:
How can I estimate the value of my loan?
To have a State Farm Mortgage Loan Originator estimate your home equity loan amount and monthly payments, you can contact your local State Farm agent or fill out an inquiry form online. Another option is to use the State Farm Line of Credit Calculator available on the website.
Can I apply for a loan with this company if I am retired?
Yes, but you may need to supply additional documents to verify that you will be able to afford the minimum monthly payment of $100.
How much can I borrow, and can I start paying off my loan early?
You can borrow up to a maximum combined loan-to-value (LTV) of 85%. The exact amount will be dependent on several different factors. Loans that are paid off and closed within three yearswill incur an Early Closure Fee of up to $500.
More Information:
Overview:
StateFarm offers home equity loans with a competitive fixed interest rate for the life of the loan, and a convenientmonthly payment schedule.
Package Details:
StateFarm offers home equity loanswith a fixedAPR and terms that may vary.The interest rate and maximum combined loan-to-value (CLTV) of up to 85% can change based on a customer’s credit score, loan amount, and repayment term. The loan amount can range from $10,000 to $500,000. State Farm does not require an application fee, and has low lender closing fees.Interest on home equity loans may be tax-deductible, thus reducing your tax burden. An early closure fee may be levied if the account is paid off and closed within three years of opening.
Optional Accessories or Add-on Services: State Farm also offers Home Equity Lines of Credit, which allow seniors to tap into their home’s equity.
Contract Details:
There is no cancellation procedure for State Farm home equity loans. To cancel the loan, it must be paid in full, including any interest and associated fees.
Fees:There are no application fees for a State Farm home equity loan, but other fees may apply. Interest rate and maximum loan amount depend on a variety of factors including customer’s credit score, loan amount, and repayment terms. Check with your local State Farm office for complete terms and conditions.If the loan is paid in full and closed within the first three years, State Farm will charge a $500 Early Closure Fee.
Warranty: None
Accreditations: State Farm is not accredited by the Better Business Bureau, but maintains a rating of A+.
Company Details: State Farm was founded in 1922 by a retired farmer, G. J. Mecherle, to sell automobile insurance policies. Today, the company boasts 83 million policies and accounts. The mission of State Farm is to, “help people manage the risks of everyday life, recover from the unexpected, and realize their dreams.”
State Farm Bank
P.O. Box 419001
Saint Louis, MO 63141-9001
Tel: 888-556-3498
Website: https://www.statefarm.com
