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Achieving Dreams

Tap Your Home’s Equity

If you need cash to remodel your kitchen or bath, a home equity loan or home equity line of credit (HELOC) might be your best bet. Generally, financing involving your home is a lower cost form of borrowing than other options such as credit cards or personal loans. With the higher home prices in Central Oregon this year, your home’s equity might provide the resources that can be used for a variety of your needs.

Home Equity Loans

These loans let you borrow money using the equity in your home as collateral. Unlike almost any other consumer loan type, the interest on a home equity loan or HELOC of $100,000 or less is likely to be tax-deductible ($50,000 if married filing separately).

With a home equity loan, you borrow a lump sum of money repayable over a fixed term, usually 5 to 15 years, giving you the security of a locked-in rate and a consistent monthly payment.

Home Equity Line of Credit

A HELOC (Home equity line of credit) is much like a credit card or any other type of open-ended credit. You can borrow money as needed, up to the credit limit your lender assigns, by making a transfer into your checking account. A HELOC is usually a variable-rate loan, so your monthly payments will change based on your outstanding balance and fluctuations in the prime rate.

Getting Started

Before doing any kind of borrowing, you should understand about your options and the consequences of your decision. We recommend you read a great informational piece from The Federal Reserve Board, What You Should Know About Home Equity Lines of Credit before you apply.

Talk to the home loan specialists at Mid Oregon Credit Union today for more details about our home equity loan products. Contact us today online at midoregon.com, through email to info@midoregon.com, on the phone to (541) 382-1795 or stop in at one of our seven convenient Central Oregon branches.

For more information about Mid Oregon Home Equity Loans, visit https://www.midoregon.com/loans/home-equity.shtml.