If credit card payments are eating up your disposable income each month, or if you need cash to remodel your kitchen, buy a new car, take a vacation or anything else, a home equity loan or home equity line of credit (HELOC) might be your best bet.
Common Home Equity Loan Uses
- Remodel, renovate, or otherwise improve the house and property
- Pay for a family member’s college education
- Fund the purchase of a second home
- Consolidate high-interest debts
These loans let you borrow money using the equity in your home as collateral. Unlike almost any other consumer loan type, the interest on a home equity loan or HELOC of $100,000 or less may be tax-deductible ($50,000 if married filing separately).
Benefits of Home Equity Loans
- Home equity loans typically have a lower interest rate (or APR)
- Interest costs on a home equity loan may be tax deductible
- Borrowers can qualify for relatively large loans with this type of loan
Home Equity Loans
With a home equity loan, you borrow a lump sum of money repayable over a fixed term, usually five to 15 years, giving you the security of a locked-in rate and a consistent monthly payment.
Apply for a Home Equity Loan
Home Equity Lines of Credit
A HELOC is much like a credit card or any other type of open-ended credit. You can borrow money when you need it, up to the credit limit your lender assigns. At Truity, you can access your HELOC by using our low rate HELOC Gold MasterCard, or by making a transfer into your checking account. A HELOC is a variable-rate loan, so your monthly payments will change based on your outstanding balance and fluctuations in the prime rate. HELOCs are not available in all states.
Apply for a Home Equity Line of Credit
Home equity products do have closing costs, but they're generally far lower than for first mortgages, and the Credit Union will sometimes waive the costs or roll them into the amount borrowed. With a HELOC, once you establish your line of credit you can borrow multiple times with no additional closing costs.
You’ll find all the information you need about Home Equity loans in our Home Loan Center. Check home equity rates or apply now.