Three Reasons to Access Your Home Equity

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Do you own a home that you’ve been making regular mortgage payments on for the last several years? Do you have financial goals that you aren’t sure how to make a reality? Your home may be able to help make them happen.

From the time you purchase a home and begin making mortgage payments, you are building equity — the difference between the value of your home and the remaining balance of your mortgage. Some homeowners use their equity to support their financial or personal goals by accessing a secured line of credit, known as a Home Equity Line of Credit (HELOC). They feature an affordable interest rate that helps payments fit into your budget with no penalty for paying your balance quickly. To determine how much equity you have available, connect with a Financial Advisor to arrange an appraisal. Once the value of your home has been determined, this line of credit could allow you to access up to 80% of your home’s value, less the amount owing on your mortgage.

Could you benefit from accessing a secured line of credit at a lower interest rate? Here are some of the common ways people use their home equity to get ahead: 

Putting Yourself on the Right Path
Life can have a lot of unexpected twists and turns … and bills. Despite paying down a mortgage, people can sometimes find themselves feeling overwhelmed by other debt. If you find yourself on that slippery slope, connect with a Financial Advisor and ask them if this product may be right for you. They provide a great option for consolidating debt at an affordable interest rate that can put your mind at ease and your finances back on track.

Increase Value in Your Home
Increase the value and comfort of your home by completing the renovations or upgrades you’ve been dreaming of. Whether designing an Instagram-worthy kitchen, replacing a leaky roof, building a workshop or making energy efficient upgrades, a HELOC can help make your house a dream home and increase resale value.

Investing in your future
Investing in your future can feel challenging when you have regular bills and limited savings designated for emergencies. Furthering education for you or your child, buying property or expanding your business don’t have to just be daydreams. Leveraging your home equity can help make the future brighter.

As with any type of credit, if you’re considering using a secured line of credit to help achieve your goals, it is important to carefully consider your purchases and ensure you have a plan to pay back what you borrow. Like a credit card, they are revolving credit, so once you pay it down you can leverage it again for your next project.

From putting yourself on the right path to investing in your home or future, your home equity could help make it happen. Connect with a member of the CUA team to learn more.

Revised Jul. 4, 2021

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