Believe it or not, many American families are blissfully unaware of the home equity they have built up until they try to sell their house! Especially if your home is in good shape, there’s a good chance that you’ve built up a lot of equity over the years. What is equity, you ask? Well, in a nutshell, your home’s equity is one word: cash.
Especially if you’ve been apprehensive about paying off some long-overdue debt, are in need of home renovations, or are worried about covering your child’s education for this upcoming school year. Your home’s equity could be your saving grace towards financial security and comfort if you use it correctly.
In our opinion, the best way to leverage your home’s equity is through a home equity line of credit. A HELOC is a revolving line of credit secured by your home that is available whenever and wherever you need it.
Let us break it down for you.
How does a HELOC work?
With a HELOC, you’re borrowing against the available equity in your home, and your house is used as collateral for the line of credit. As you repay your balance, the amount of available credit is replenished, just like a credit card! Essentially, this means that you can borrow as much or as little as you’d like from it again whenever the need arises within your draw period. At the end of your draw period, your repayment period begins!
If you’re an RMLEFCU member, the benefits don’t stop there.
Low Payments – Starting at $100 per $10,000 drawn
Interest Only Option – this lowers your payment even more!
Low Interest Rates – Starting at 5.5% APR*
Do I qualify for a HELOC?
To qualify for a HELOC, you’ll have to have available equity in your home. In other words, the amount you owe on your home must be less than its value. At RMLEFCU, we allow our members to borrow up to 85% of their home’s value.
Several homeowners have seen an increase in the value of their home over the course of this past year, which makes HELOCs a smart option for financing large expenses at a low rate. At RMLEFCU, our HELOC rate currently starts as low as 5.5% APR*. To make matters even better, many purchases (like home improvements) are tax deductible!**
Take a Breath of Relief – RMLEFCU Has Your Back
We understand that undergoing financial hardship can be stressful, overwhelming, and all around unpleasant. With an RMLEFCU HELOC in your arsenal, we’re confident that you’ll feel a huge weight off your shoulders.
If you’d like to learn more about (or even apply for!) our HELOC, please visit this page. If you’d like to discuss your options with an RMLEFCU representative, please contact us at (303) 458-6660 or visit us at one of our local branches.
*Annual Percentage Rate. With approved credit. Some restrictions may apply.
**Consult your tax professional.