4 Ways Your Home Can Loan You Money
Are you thinking about renovating your home? Or maybe you’re planning a vacation, a wedding, or sending a child off to college? Those significant life events and large projects can require more funds than what you have on hand. At Black Hills Federal Credit Union, we have you covered with four home loan options to support your life.
#1 – Home Equity Line of Credit (HELOC)
A HELOC provides an open line of credit pulling from your home’s equity up to an approved amount you can use as needed. We commonly see HELOCs used for family vacations, to help get a child through college, or pay for a wedding. HELOCs are unique because they allow funds to be available as you need them, and you only pay interest on the amount used. This loan is perfect for big expenses that you may need to pay on over time.
#2 – Home Equity Loan
Home equity loans provide homeowners the entire loan amount in one lump sum pulled directly from your equity. This loan type is ideal for large projects with a defined timeline and payment needed upfront, like a kitchen remodel, finishing a basement, or putting up a carport or garage. Home equity loans can also come in handy if you are looking to consolidate high-interest credit card debt into a lower rate or a lower rate alternative to a personal loan.
#3 – Cash-out Refinance
Another way to use your home’s equity is a cash-out refinance. Refinance your mortgage for a higher loan amount than what you owe and pocket the difference. Plus, you may even be able to reduce your payment or term based on your situation. Because mortgage rates are typically lower than other loans, this may be the right option for you. Use your funds to finance home improvements, plan a vacation, pay off high-rate student loan debt, or whatever you need.
#4 – Home Improvement Loan
Don't have equity in your home yet, but need to make improvements? No problem. BHFCU’s home improvement loan requires no equity. This loan is perfect for a newer homeowner needing to make updates to their home. With the home improvement loan, you may not be using equity, but the updates will pay for themselves down the road. Make your dream home come to life with our home improvement loan.
Our expert lenders are ready to walk through your plans and situation to help decide which home loan will best support your life. Visit one of our locations or call us at 605-718-1818.