We can help you make your house your own.
A home-equity line of credit (HELOC) is a variable-rate loan that works similar to a credit card where you are pre-approved for a certain spending limit and can withdraw money when you need it to complete special projects or large purchases. Monthly payments vary based on the amount of money borrowed and the current interest rate. Like fixed-rate loans, the HELOC has a set term. When the end of the term is reached, the outstanding loan amount must be repaid in full.
Benefits for our Members
Home-equity loans provide an easy source of cash. The interest rate on a home-equity loan — although higher than that of a first mortgage — is much lower than on credit cards and other consumer loans. As such, the number-one reason consumers borrow against the value of their homes via a fixed-rate home equity loan is to pay off credit card balances (according to bankrate.com). Interest paid on a home-equity loan is also tax deductible, as we noted earlier. So, by consolidating debt with the home-equity loan, consumers get a single payment, a lower interest rate and tax benefits.
The Right Way to Use a Home-Equity Loan
If you are purchasing a new home, or if you need a longer term first mortgage, we’ve got you covered. We have exceptional partners such as Centennial Lending that help us to provide home equity loan options and purchase options to meet your goals.
Should You Tap Your Home’s Equity?
Food, clothing and shelter are life’s basic necessities, but only shelter can be leveraged for cash. Despite the risk involved, it is easy to be tempted into using home equity to splurge on expensive luxuries. At Minnequa Works, we are here to help educate you as a Member on the available options that can be used to meet your specific goals and financial needs. We help to ensure that you understand the terms of the loan and have the means to make the payments without compromising other bills and comfortably repay the debt on or before its due date.
With a Home Equity Line of Credit (HELOC) you can borrow against the equity you’ve built up in your home.
- Since it’s a line of credit you only need to apply once
- Make advances as you need money
- You may enjoy a tax benefit. Check with your tax advisor
