The Key to Unlocking Your Home's Hidden Wealth
Home Equity Lines of Credit and Home Equity Loans
June is National Homeownership Month, a time to get excited about the power of homeownership. Owning a home is more than just a place to live - it's an accomplishment to be proud of and a financial investment that can set you up for a bright future. And the best part? You can unlock the potential of that investment with a Home Equity Line of Credit (HELOC) or Fixed-Rate Home Equity Loan (HEFT).
One of the benefits of homeownership is the ability to build equity in your home over time. As you pay down your mortgage and your home's value increases, your equity grows. HELOCs and HEFTs are two methods of borrowing money against the equity in your home.
Is a HELOC Right for Me?
The perk of a HELOC is right in its name – it’s a line of credit. You are borrowing against the equity of your home to finance home renovations, consolidate debt, or cover unexpected expenses. HELOCs typically have lower interest rates than credit cards or personal loans, often making them a smart financial choice.
Additionally, HELOCs offer flexibility that typically other loans can't match. You can borrow as much or as little as you need, up to a predetermined limit, and you only pay interest on the amount you borrow, not on the entire credit limit. Plus, the interest on a HELOC may be tax-deductible, saving you even more money.
Is a HEFT Right for Me?
If you're planning a major expense like a home renovation, a new car, or your kid's education, a fixed-rate home equity loan could be your ticket to ride. With a HEFT, you'll get a set amount of cash up front, so you can budget and plan accordingly. You'll also enjoy the predictability of fixed monthly payments that stay the same throughout the life of the loan.
Because the loan is secured by your home, you may score a lower interest rate than with an unsecured loan. A HEFT from DFCU also comes with other sweet benefits, like no annual fee, no application fee, and a discounted interest rate when you set up automatic payments from your DFCU checking account. So, if you're looking for a reliable and hassle-free way to finance your dreams, a HEFT could be just the thing to make it happen.
Committed to Your Specific Financial Needs and Goals
At DFCU Financial, we're committed to helping you make the most of your home equity. Whether a HEFT or HELOC is a better choice for you will depend on your specific financial needs and goals. With competitive rates and flexible repayment options, our loan officers can help you access the funds you need to achieve your financial goals. Simply put, we're here to help.
For National Homeownership Month, don't just celebrate owning a home - celebrate the financial opportunities that come with it. A HELOC or HEFT can be your key to unlocking your home's hidden wealth and building a strong financial future. With DFCU Financial, it's easy to get started. Apply online now for an instant loan decision and start putting your home equity to work for you.
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