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.

How can a HELOC help?

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:

• Appraisal
• Application fee
• Title search
• Attorney fees

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.