HOME EQUITY FAQ

What is a home equity loan?

More and more lenders are offering home equity lines of credit. By using the equity in your home, you may qualify for a sizable amount of credit, available for use when and how you please, at an interest rate that is relatively low. Furthermore, under the tax law–depending on your specific situation–you may be allowed to deduct the interest because the debt is secured by your home.

What can I use a Home Equity Loan for?

You can use the loan for almost anything; however, many people use home equity loans for home improvement, debt consolidation, purchasing luxury items, or paying for college.

Make Your Home Equity Work for You!

If you own a home, using the equity you have built up may be one of the most cost-effective ways to finance a home improvement project. And in many cases, home equity products can offer you a lower interest rate as compared to other types of loans.

What is Home Equity Protection?

Many homeowners and homebuyers worry about the possibility that home prices could fall where they live, causing them to lose money on the resale of the home. Home Equity Protection (HEP) allows you to buy or stay in a home with the confidence that you will be protected if home prices decrease in the area where you live. HEP provides financial protection to you in the event that home prices decline in your ZIP code between the time you purchase the protection and the time you sell your home, in exchange for a one-time fee. When you purchase Home Equity Protection, you tell the program how much your home is worth. (That becomes the Protected Value of your home, on which your protection is based). When you resell your home, HEP pays down your mortgage (or pays you directly) if home prices have dropped in your ZIP code.

What type of property is eligible for a home equity loan?

Home equities are available for a 1 to 4 family residential unit, which is owner occupied as a primary residence. The credit union does not offer home equity loans on a property that is being purchased on contract.

Is it a home equity loan good for you?

If you are in the market for credit, a home equity plan may be right for you. Or perhaps another form of credit would be better. Before making a decision, you should weigh carefully the costs of a home equity line against the benefits.

Most home equity loans have fixed interest rates that are much lower than credit card debt. Interest on home equity loans can be tax deductible