HHCU Home Equity Loans are a smart way to access extra cash at a great rate and with no closing costs! Here are some details to get you started.
What is equity?
As the value of your home increases over the amount you paid for it, you build equity.
How can I make it work for me?
When you use this equity to secure a loan or line of credit, you can get a better rate than with most other loan types.
With a home equity loan, you borrow a lump sum of $10,000 or more and then pay it off at a fixed interest rate over time. HHCU loan terms are available between seven and 15 years.
A home equity line of credit, also called a HELOC, allows you to borrow as you need to, like a credit card, but with a much better rate. During the first ten years, or ‘the draw period,’ you can repay only the interest, if you like. After the draw period, you have 15 years to repay the balance. The rate of this loan varies with the prime rate, also called a variable rate.
One major advantage of these loans over other types of mortgage loans is that there are no closing costs when you get a home equity loan from HHCU.
When might it make sense to get a home equity loan or line of credit?
Many members we help with home equity loans are facing unexpected bills, such as medical bills, and are looking for a smart way to manage them. Some are looking for a lower cost way to help children or grandchildren with education expenses. Still others borrow to improve and increase the value of their home.
Another large category of members find they have several smaller debts that have higher rates than what they can get with a loan secured by their home’s equity. They can use a lower rate home equity loan to pay off these debts. Due to the reduced interest, they are then able to make lower monthly payments.
When you’re ready to look at options personalized to your situation, come talk to one of our experienced lenders. Helping members like you is why we’re here!