As a homeowner, your equity holds more than just sentimental value—it’s a powerful tool in your financial toolkit. One powerful way to tap into it is through a Home Equity Line of Credit (HELOC). But what exactly is a HELOC, and how can it work for you? Let’s break it down.

What Is a HELOC?

A HELOC is a type of revolving, second mortgage that lets you borrow against your home’s equity—essentially, the difference between what your home is worth and what you owe on the mortgage. Think of it like a credit card with your home as collateral.

Unlike a lump-sum home equity loan, which gives you a fixed amount at one time, a HELOC offers flexibility. You borrow, repay, and borrow again as needed. You pay interest only on what you’ve drawn, much like a credit card.

Why Use a HELOC?

Here are some smart ways homeowners use HELOCs:

• Home Renovations: For ongoing upgrades that add value to your property.
• Debt Consolidation: Move high-interest burdens such as credit cards onto a lower-rate HELOC.
• Keep First Mortgage: If you’re locked into a favorable mortgage rate, a HELOC enables borrowing without altering that rate.
• Tax Advantage: Consult a tax advisor to determine if interest may be tax deductible.

Learn more at https://www.natcocu.org/home-equity-loans/.

Give us a call or send us a text at 765-962-2561 to find out if a home equity loan is right for you.

Ready to get started?

Click to apply.