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Why do I need a Home Equity Line of Credit?

By: CFSB / 02 Jun 2022
Why do I need a home equity line of credit?

While the housing market continues to fluctuate and home loan rates increase, you may consider updating your home or making improvements. A Home Equity Line of Credit, also known as a HELOC, might be a great option for you! Here's what you should know. 

It's not just for home improvement

A HELOC gives you a line of credit that is secured by your home value, that you can use on anything. Many people don't realize that although this credit is generally taken out for home improvements or updates, the line of credit can be used for auto purchases, emergencies, appliances or anything you need a little cash up front for.

The amount of credit can vary 

Your community banker will look at what you have paid on your home loan already and determine what credit limit you are approved for. In other words, you are using the "equity" on the value of your home to take out this extra line of credit. Your community banker will work with you to decide what amount of credit is right for you.

You can use the credit more than once

The line of credit will have a term, meaning you can use it as many times as you want within that term. Keep paying it down, keep using the credit. It's that simple.  

The application process is simple

A community banker will help you get started with the process and can walk you through each step.  All you will need is your updated income information including your previous W2 and recent paystubs. If you've gone through the mortgage process before, this will be simple!

If you have questions about a HELOC or your home improvement options, one of our experienced lenders would be more than happy to talk to you!

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