You may be familiar with a home equity loan. It’s a closed-end term loan that uses your home to secure the value, hence the name. These loans are sometimes referred to as second mortgages and usually have a 5-7 year life with one lump sum being borrowed at initiation of the loan. There is a second home equity loan you may not be as familiar with, and it’s all about ease and convenience. It’s a home equity line of credit (HELOC). Just like the traditional home equity loan, the line of credit is secured by the equity you have in your home. However, with a HELOC, you are approved to borrow a specific sum of money based on the value of your home and the equity you have built. Your approval amount becomes your available loan balance. You don't have to borrow all of it at the time of approval or even the next week. You borrow it when you need it! Ease of UseWith a HELOC, your loan operates more like a credit card than a loan. You have a pre-approved limit, and you borrow money, using a designated Visa card, whenever and wherever you need the money. The amount you borrow decreases your available principle, and as you repay the HELOC, your available credit builds. It’s as easy as using a credit card! AffordableMACU HELOCs have a very low interest rate, making borrowing from your line of credit much more affordable than using high-interest credit cards. VersatileMACU HELOCs are not just for home improvement! In addition to sprucing up your home, you can take that dream vacation you’ve always wanted, pay off high-interest debt with a low-interest HELOC, pay for college expenses, or anything else you may need or want! To find out if a HELOC is right for you, give us a call! We would be happy to sit down with you and go through your options!