Feb 25, 2015 / Home Equity
A Home Equity Line of Credit (HELOC) lets you use the equity in your home to get the cash you need. Most of the time, people use a HELOC for home improvements–a new roof or a kitchen remodel–but did you know that you could use it for lots of other expenses?
Utah First Credit Union is offering a flexible HELOC plan that lets you borrow against your home’s equity to pay for just about anything. Read on to learn if a home equity loan may be right for you.
What is a HELOC?
A home equity line of credit lets you borrow money using your home as collateral. The appraised value of your home will determine how much credit you can get. Utah First Credit Union has the most unique home equity product on the market. You get the flexibility of a credit line combined with the security of a fixed-rate loan—all in one.
How Does It Work?
Once approved, you can borrow up to your credit limit whenever you want. At Utah First, you can borrow up to 125% of the appraised value of your home for home improvements and up to 100% for any other major expenses. You can use your HELOC account just like a bank account, by writing a check or using a credit card. You can switch balances between your credit line or loans whenever you want. With variable and fixed-rate options and no origination costs or fees, Utah First gives you the flexibility to lock in a fixed rate on all or just a portion of your loan. There are also interest-only payment options. The interest may even be tax deductible. (Consult a tax professional to find out about potential deductions.)
What Can I Use a HELOC For?
You can use a HELOC as a loan or line of credit to give you the ability to finance a wide range of personal expenses. Many homeowners use their home equity line of credit to pay for home improvements: remodeling a kitchen or bathroom, getting a new roof, or to finance unexpected high-cost repairs. But with a Utah First HELOC, you may be surprised to learn that our borrowers can use the money to pay for a wide variety of family expenses such as medical bills, school tuition, and vacations. You can even use your HELOC to pay for a wedding, consolidate debts, or even pay the IRS. Some homeowners open a HELOC as a way to plan for the future: Anytime you need additional cash for unexpected expenses or emergencies, you can tap into your HELOC to get the money you need.
How Do I Get a HELOC?
To find out more about how you can open a home equity line of credit, call a Utah First Credit Union Loan Specialist at 800-234-0729 or click here.