Spring and summer are popular times to make changes around the house: now that the winter rains are tapering off, perhaps it’s time to work on the roof? Or is that bright sunlight showing off the faded paint and worn-out furniture in the living room? Spring is a great time for fresh starts, so what are some good ways to fund those important projects?
Home equity loans or home equity lines of credit (HELOCs) are great, low-interest ways to have the cash you need, when you need it. GHCU’s home equity rates are generally far lower than credit card rates, and with no annual fees or upfront closing costs, the money you borrow goes even farther.* Additionally, home equity loans can have tax benefits, though you’ll need to consult with your tax advisor to determine if you qualify.
The difference between a home equity loan and a line of credit
A home equity loan usually has a fixed-rate, meaning your interest rate doesn’t change over the life of the loan. Additionally, you receive the amount of the loan all at once and repay it over time, plus interest. The advantage of this type of loan is that you have the money you need upfront—which can be very convenient if you know how much your project is likely to cost.
A home equity line of credit is revolving credit, so you only take out—and pay interest on—as much of the available line as you need at any one time. This is a useful feature when you have several smaller projects strung out over time and you don’t need a large sum of cash all at once.
GHCU has made accessing your home equity funds very simple. With a home equity loan, borrowers receive the money in a single lump sum. Borrowers with HELOCs can access their money either through online banking with an Online Access HELOC or by using a special Visa card with a Visa Access HELOC.
Whatever you need the money for, whether it’s a new roof, repairs to your water heater or simply bringing outstanding debt under one, low-interest umbrella, a home equity loan or line of credit can be a smart, cost-effective solution. Call GHCU or visit a branch for more information: 800-562-5515 or 206-298-9394.
*All GHCU loans are subject to credit approval. Upfront closing costs may apply to some property types.