As you pay your mortgage over the years and home values increase, your home builds up equity, the amount it is worth minus the amount you owe on it. A home equity loan or home equity line of credit (HELOC) allows you to take out a loan based on the amount of equity that has accumulated. At FOCUS CU, you can borrow up to 100% of your home’s loan-to-value. This allows the value of your home to work for you.

Put Your Home’s Equity to Work for You

A great use for either a home equity loan or a HELOC is for a project that repairs, updates, or enhances the value of your home. That way, the equity is invested back into your property. But that is not the only way to use these convenient loans. You can also use the money for a once-in-a-lifetime trip, education, or a big event. You might use it to consolidate debt. Whatever you use it for, FOCUS Credit Union offers great, current rates, and a variety of options and terms.

Choosing Between a Home Equity Loan or HELOC

The first step is to decide whether a home equity loan or a HELOC is a better option for you. A home equity loan functions like most other loans: you take a one-time disbursement of funds, and pay it off over a set term, at a set rate of interest. 

A home equity line of credit opens a credit line with a set maximum, from which you draw funds as you need them for your project and pay interest on the balance. You have a specific length of time over which to draw the funds, and a repayment period during which you pay off the amount you drew, plus interest. 

If you are interested in a home equity loan or HELOC, please fill out our contact form, and we will get in touch with you to discuss your plans and home equity options.