They say home is where the heart is – it may be where the smart borrowing is, too! If you've lived in your home for a while, you may have equity built up that can help you manage your finances. If you have a large purchase or expense on the horizon, you'd like to upgrade your home, or you’d like to manage debt better, a home loan could be right for you.
Home Equity Rates Are Still Low
Home equity rates make it possible to borrow money with lower rates (much, much lower!) compared to credit cards, so you can save money in the long run. The first step is to decide which is best for you, a fixed home equity loan or home equity line of credit (HELOC).
- A fixed home equity loan is an installment loan for a fixed amount, usually at a fixed rate. You know from the start how many payments you need to make, and the amount doesn’t change.
- A HELOC works much the same as a credit card. You have a revolving amount to borrow against. As you pay back what you borrow, the line becomes available for you to use again. A home equity line can be the perfect financing solution for home repairs and energy-efficient home projects. Having a line of credit that's easily accessible can also be a lifesaver if you need funds quickly when emergency savings aren't enough.
HELOCs are attractive for many homeowners because interest rates are typically lower than other loans, and the interest paid may be deductible.* HELOC borrowers also have more flexibility around repayment than with a fixed loan.
Get the Best of Both
Hanscom Home Equity Plan combines the predictability of a fixed-rate loan with the flexibility of a line of credit. Plus, you can designate a portion of your line as a Platinum Mastercard® for even greater convenience.
Something to Talk About
Because a HELOC is secured by your home's value, you'll want to keep your borrowing amount in check. Inability to repay could result in losing your home. We’ll work with you to determine a loan limit that is appropriate for your needs and budget.
Contact us for information or to apply for a loan through Hanscom FCU.
* Check with your tax advisor regarding tax deductibility in your situation.
Learn more about HELOCs by downloading our free Equity Edge eGuide. This eGuide will introduce you to current remodeling trends, affordable fixes, and includes tip sheets on going green and quick DIY projects to spruce up your home in a pinch.
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