How a Home Equity Line of Credit Can Help Reach Goals
What is a Home Equity Line of Credit?
A Home Equity Line of Credit (HELOC) is a line of credit secured by home ownership from borrowing against the value, or equity, in your home. Once opened, there is a ten-year period in which you can borrow and accumulate a balance. As you pay the balance off, the amount of available credit increases. At the end of the draw period, you must repay the balance over the twenty-year repayment period.
A HELOC helps you reach needs and goals. HELOCs have low-interest rates, often only a 1/3 of the interest rates of most credit cards. Using a HELOC to consolidate debt allows you to take advantage of low interest rates. The long-term repayment plan also offers lower monthly payments. During the draw period, payments are flexible. It can alleviate the financial pressure of other debt.
Opening a HELOC also offers a lot of flexibility and peace of mind. A HELOC is a large amount of accessible money for unexpected or emergency expenses. It prevents you from relying on high-interest credit cards or draining retirement and savings. Large expenses such as college tuition can also be paid with a HELOC to taking advantage of the low interest rates and long-term payback.
Regardless of your financial needs, opening a HELOC with Bragg Mutual Federal Credit Union can help you reach your goals. Our skilled lenders are ready to help you get the most out of your home equity.
Trust Bragg Mutual Federal Credit Union to save you money and make you money. To learn more about our services and find which branch is closest, please visit braggmutual.org or call 910-222-1500.