For many homeowners, their residence is one of their largest investments—or “the biggest” if you talk to Consumer Credit Unions Home Equity Manager John Marshall.

A home equity line of credit, or HELOC, allows homeowners to access the equity they’ve built up in their property in a flexible way. As Marshall explains, a HELOC “is a great way to turn that investment into usable funds” that can be put toward home improvements, debt consolidation, education expenses, vacations and other financial needs.

So, how does it work?

A HELOC works like an open line of credit that is secured by the homeowner’s equity. Homeowners can borrow what they need up to an approved limit, then pay it back over time while retaining access to the funds. Interest rates on HELOCs are typically lower than credit cards or personal loans since the loan is secured by real estate. Borrowers benefit from potentially saving money on interest charges by using their home equity. The application process is also convenient—members can apply online using a quick application.

Once approved, homeowners can withdraw from a Consumers HELOC whenever needed for 10 years, then have up to 20 years to pay it back. This flexibility makes a HELOC useful for handling irregular large expenses. Funds can be used and paid down repeatedly over the life of the account. For example, homeowners may tap their HELOC to fund home renovations, then pay it down when they refinance. Later, they could borrow from the HELOC again to help pay tuition costs. Best of all, any payments reduce the balance and leave more equity available.

Qualified members can receive a lower interest rate than other loan types. Consumers also offers the added convenience of allowing members to set up their HELOC as overdraft protection on their accounts for unplanned expenses.

Overall, a HELOC can provide homeowners with a cost-effective way to access the equity in their residence to cover financial needs both now and in the future.

Contact us today to learn more about tapping your home equity with a HELOC.

 

 

 

 

All loans subject to approval. Rates, terms, and conditions are subject to change and may vary based on credit worthiness, qualifications, and collateral conditions.