Are you taking full advantage of your home’s value? If you aren’t using a HELOC, then you’re missing out on an easy way to access that equity for home improvements, college education, or even to have in your back pocket to cover the cost of large, unexpected expenses brought on as a result of an emergency. If you’re wanting to consolidate debt, there is a fixed rate Home Equity loan that can help out in that situation as well. See what you can do with your home’s equity now!
What is a HELOC Used For?
The full term is “home equity line of credit,” which means borrowing against your home’s equity, which is the value of your house minus what you still owe on your mortgage.
For example, if your market value was $200,000 and you still owe $60,000, you would have $140,000 worth of home equity. Your equity increases as you pay off your mortgage, or when your house’s market value rises.
When you have home equity it can be accessed with a line of credit, using your house as collateral, in return for a lower interest rate. Like a credit card, you can use your line of credit again as you pay the balance down.
Using a HELOC for Home Improvements, college education or as a safety net for unexpected emergencies
One of the most cost-effective ways to use your HELOC is on home improvements. Depending on the type of improvements, your house’s value can increase more than the cost of the actual improvements. You can also use this to help fund your children’s college education or to have in case you have an unexpected emergency that has a large price tag to get it taken care of. This could help get something major fixed until the insurance money comes in, when you can put that back on the principal of the loan to re-use later on.
Using a Home Equity Loan for Debt Consolidation
Another great way to use your home equity is for consolidating multiple sources of debt into one loan to pay off instead. The most preferred option is a Fixed Rate Home Equity loan where the interest rate stays the same, no matter what the market does!
Using a Home Equity Loan to Fund Major Purchases
Your fixed rate Home Equity Loan can be used to fund nearly any purchase, even a new vehicle, investment or vacation! If you are planning multiple purchases like this, you can use one loan application to handle it all at one time.
Unlock the Power of a Home Equity Loan at United Financial
If you hold your mortgage with United Financial Credit Union, you’re already a step ahead to getting either of these loans started! If your mortgage isn’t with us, the first step is to bring it here! You may even be able to refinance your loan into lower monthly payments!
Either way, applying for a Home Equity Loan is easy! You can call or schedule your appointment online. One of our Mortgage Professionals will meet with you, get your application completed and send out an appraiser to establish your current value. About 2 weeks or so later, you will be going to the closing table to sign your Home Equity paperwork.
In conclusion, Home Equity loans are a great way to access funds for home improvements. If you are looking to pay off multiple sources of debt though, you would want to consider a fixed rate Home Equity Loan. If you want to have a safety net for unexpected large expenses, pay for your children’s college education, or if you’re planning to do multiple remodel projects over a period of time, then a HELOC would be the route to go. Ready to make your home work for you? Apply today to get the process started and tap into your home’s equity.