At Freedom Credit Union, we’re here to help you make the most of your financial opportunities. One powerful tool for homeowners is a Home Equity Line of Credit (HELOC). But what is it, and how can it work for you? Let’s break it down.
What Is a HELOC?
A HELOC is a revolving line of credit that allows you to borrow against the equity in your home. Equity is the difference between what your home is worth and what you owe on your mortgage. With a HELOC, you can access that equity when you need it—like a credit card, but secured by your home.
For example, if your home is worth $400,000 and you owe $250,000 on your mortgage, your equity is $150,000. At Freedom Credit Union, we allow you to borrow up to 80% of your home’s value minus your mortgage balance. In this case:
- 80% of $400,000 = $320,000
- $320,000 – $250,000 = $70,000 available for your HELOC
How People Use HELOCs
HELOCs are incredibly versatile. Here are a few popular ways members use them:
- Home Improvements: Upgrade your kitchen, add a deck, or finish your basement. These investments can increase your home’s value and your enjoyment of it.
- Debt Consolidation: Pay off high-interest credit cards or loans with your HELOC’s typically lower interest rate.
- Emergency Fund: Cover unexpected expenses like medical bills or major car repairs.
- Education Costs: Fund tuition, books, or other education-related expenses.
A HELOC is a flexible and cost-effective way to reach your financial goals. Plus, you only pay interest on the amount you borrow, giving you control over your payments.
At Freedom Credit Union, we offer competitive HELOC rates, personalized service, and expert advice to help you take the next step toward financial freedom.
Ready to Get Started?
If you’re a homeowner in Utah County, let’s talk about how a HELOC could work for you. Visit our website or stop by one of our branches to learn more. Your home equity is waiting—let us help you put it to good use!
Open a HELOC today!
Not a member of Freedom Credit Union? Join today!
