The odds are good that your home is one of your largest investments and if you have equity in your home, it may be one of the best and easiest financial tools to use when you need cash. Leveraging the funds from your home’s equity can be beneficial for a number of reasons, from consolidating debt to financing major expenses, such as home renovations or repairs.
Your home’s equity is simply the current value of your home minus the current balance on any loans or liens that may still be owed on the home. Building equity happens through payments towards your mortgage loan and increasing the value of a home. To quickly build equity, homeowners may want to add improvements such as updating interiors, adding rooms on or improving exteriors.
In the current market, you may find that your home has also appreciated, or increased in value. Home prices have risen markedly in the last few years due to the pandemic and decreased availability. This appreciation also contributes to the equity in your home.
One way to utilize the equity in your home is through a Home Equity Line of Credit or HELOC, which is a variable-rate loan set up as a revolving line of credit. By utilizing a HELOC you have access to available loan funds based on an established loan limit using your home as collateral. Funds can be used whenever you want, for whatever you want!
Some of the benefits of a Home Equity Line of Credit include:
- Low variable rate
- Lower initial monthly payments
- Easy access to funds
- Potential tax savings*
- No pre-payment penalties
- No annual maintenance fees
- May qualify for zero closing costs**
- Use for recurring expenses like education costs or investments
If you’ve decided now is the time to address those long-awaited home projects, consolidate debt or take that next vacation, our lending specialists can help you get the most out of your home’s equity. Call 512.435.4444 or click here to learn more!
Membership/Regular Savings account required. Limited time offer. United Heritage
policies, terms, conditions and restrictions apply. Existing United Heritage loans not
eligible. Rates and fees subject to change without notice. APR is subject to underwriting approval and may increase depending on borrower qualification, applicable
finance charges or repayment term. Cash out is a 50(a)(6) first lien only. Closing
costs apply. A fee of up to $23.65 may be assessed on credit reviewed applications
regardless of loan funding. *Consult a tax advisor regarding deductibility of interest. **Lines under $200k made with acceptable Automated Valuation Model (AVM)
may qualify. Equal Housing Opportunity. NMLS #630601.