A Home Equity Loan leverages the equity you’ve built in your home to get access to funds at a lower rate than other loan types. A Home Equity Loan is a closed-end loan, meaning you get a lump sum and repay it with interest over a specified term. SESLOC offers both fixed-rate Home Equity Loans as well as an adjustable-rate loan — which means you have a period of fixed interest, after which the interest and payment adjust at specific intervals based on an economic index.
Here’s how you can use the cash from the equity in your home:
1. Home Improvements
Unlock your dream home by renovating an old bathroom or kitchen, upgrading appliances or furniture, or overhauling your landscaping. Whether you like DIY or will rely on professionals, major projects like these are costly, and your Home Equity Loan can help you see it through start to finish. Improving your home can actually increase the equity, and some projects — like converting to energy-efficient appliances or drought-tolerant landscaping — can help save you money in the long run.
2. Home Additions
A home addition is a major upgrade that expands your living space, and like renovations, additions can also increase your equity. Whether you’re adding a bedroom, converting an attic, or opening a sunroom, your Home Equity Loan can help get it done.
3. Debt Consolidation
If you’re trying to wipe out your debt, tapping into your home’s equity might be an option worth exploring. The interest rate on your Home Equity Loan may be lower than those of your other loans. If so, you can use your it to simplify your payments and reduce interest costs.
A roof leak or termites can be a costly surprise, and a Home Equity Loan can help you protect your asset.
5. Medical Expenses
Medical expenses can be overwhelming, especially for surgeries and long-term illnesses. Even with insurance, you might need assistance covering your deductible. Your Home Equity Loan can help.
6. College Education
Headed back to school, or sending your children (or grandchildren) off? Borrow from yourself to pay tuition and fees.
7. Down Payment on a Second Home
If you plan to purchase a new home but need the proceeds from the sale of your current home to make a down payment, then a Home Equity Loan may be a good alternative.
* All loans subject to credit union approval