HELOC: Just Like Borrowing From Yourself

If you’re a homeowner who needs to borrow money for home improvements, debt consolidation, or a major purchase such as a new vehicle or boat, there’s a smart financing tool you may want to consider. It’s called a home equity line of credit, or HELOC for short, and it gives you an easy way to tap into the equity you’ve built in your home when you could use some extra cash.

Your home equity is the term for the portion of your home’s value that you actually own. It’s the current market value of your home (what it would likely sell for), less what you currently owe on your mortgage. When you borrow against your equity, you’re essentially borrowing from yourself!

If you qualify for a HELOC, Indiana Members Credit Union will let you borrow a certain percentage of that equity anytime you need it. Unlike a loan, a line of credit is available to you for several years, and you can borrow against it multiple times. It’s as easy as writing a check or transferring funds to your checking account online or on your phone. For example, this year, you might borrow $15,000 for a major kitchen remodeling, and next year, you might borrow $6,000 for furniture — but you only need to get approval once, when you open your HELOC.

Best of all, when you have your HELOC with IMCU, there’s no application fee, no closing costs, no annual fee, and no penalties for prepayment. You can access your equity whenever you need it and pay it back a little at a time. Our rates are competitive, too. In fact, right now you can get a rate of just 2.9 percent APR for the first 180 days. To learn more or apply for a HELOC of your own, stop by any of our locations or visit http://www.imcu.com/Mortgage-Loan-Programs.aspx?expand=Home-Equity-Loans.

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