Tuesday, November 3, 2015

Picking a Home Equity Loan that is Right for You

Home Equity Loan is when a borrower uses the equity of their home as collateral. This type of loan is often used for home renovations or repairs, but you are not limited to just that! Many people use their equity for additional expenses, such as college tuition, a vacation, debt consolidation and more. If you are a homeowner and find yourself short on funds, a Home Equity Loan could be the right fit for your needs.

At Mid-Minnesota Federal Credit Union, we offer a vast variety of Home Equity Loan options. We dare you to compare! Below we have outlined four reasons why one loan may be a potentially better fit for you over another:

Traditional Home Equity

The Traditional Home Equity Loan allows borrowers to lock in a fixed rate. You can borrow against the equity in your home for virtually any reason, such as your dream vacation to Europe or even a new car. Plus, the interest may be tax-deductible!

Home Equity Line of Credit (HELOC)

If you need more flexibility, our HELOC plan may be the best fit. Similar to a traditional Home Equity Loan, the HELOC provides you access when you need. And, you only make monthly payments based on your balance after advances. This line of credit is good for everyday purchases both big and small. MMFCU’s HELOC is a variable rate loan.

Not Enough Equity in Your Home?

Ask about our Property Improvement Loan! If you are interested in increasing the value of your home or property, then this loan may be the best option. This is a great way to get the financing you need to build an addition to your home, remodel your kitchen or repair the siding without any built up equity.

Interest ONLY Home Equity Line of Credit (HELOC)

This loan is great if you are interested in the Home Equity Line of Credit, but are looking for smaller payments. This is very similar to a standard HELOC with a different payment plan that may better suit your budget, since you are only required to pay the monthly interest due on the balance. It is important to note that interest only payments will not pay off the amount borrowed; therefore a balloon payment will result.

One of the best benefits to a NEW Home Equity Loan at MMFCU is that there are NO CLOSING COSTS! If you’re interested in more information on applying for a Home Equity Loan with Mid-Minnesota, check out our website for current rates and payment plans. Or, stop by one of our convenient Central Minnesota locations to apply in person or fill out one of our online applications.

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