Financial Tips

Home Equity Lines of Credit

If you’re considering a kitchen remodel or another big expense, you might want to look into a home equity line of credit, or HELOC.

This type of loan lets you tap into a considerable percentage of the equity you have in your home, which is the difference between its appraised value and any amount you still owe on your mortgage.

A HELOC is like a credit card in that you can withdraw money whenever you need it, rather than getting a fixed lump sum. However, HELOC’s tend to have much lower interest rates. It’s good to know that these rates are variable and can rise or fall over time.

When considering a HELOC, ask your HomeTrust lender about any upfront costs, such as an appraisal, application fee, title search, or attorney fees – and any fees that might be required during the life of the loan.

While a HELOC can be a great source of funding to meet your needs, it’s important to remember that anything you borrow will need to be repaid. A HELOC is secured by the value of your house, which is an important consideration when considering applying for a line of credit.

That might sound scary, but between their flexibility, and generally low interest rates, a HELOC might be just what you need to start choosing those new kitchen cabinets!

Want to learn more about how you can renovate your home with a HELOC? Talk to one of our bankers today.

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