Home Equity Loans vs. Home Equity Line of Credit (HELOC)
A Home Equity Loan or Home Equity Line of Credit (HELOC) is a great way to put your home’s equity to work for you. Whether you need money for home improvement projects, paying off high-interest credit cards, consolidating debt, or you want to take that dream vacation you’ve always wanted, we can help you choose the best option for your financing needs.
To help determine whether a HELOC or a Home Equity Loan is best for you, here are a few questions to ask yourself:
- What is the length of time I will need the money? Is the loan intended for something short-term or long-term?
- Do I manage my money well?
- When do I need the money?
- How much time will I need to pay off my loan?
- What monthly payment can I afford?
Home Equity Line of Credit (HELOC) Variable Rate Program
A Home Equity Line of Credit (HELOC) is a great way to access additional money when you need it most. A HELOC offers a variable rate line of credit that uses your home as collateral for the loan. A Home Equity Line of Credit is a revolving line of credit, similar to a credit card. It allows you to draw funds only when it’s necessary and avoid paying interest on any unused funds.
NCCU offers HELOCs designed to benefit our members!
- No Annual Fees
- No Draw Fees
- $10,000 minimum line of credit
- $500 minimum advance
- Payments based on 1% of the outstanding balance (minimum $100)
- Interest rates vary based on the Wall Street Journal prime rate index
Home Equity Loans/Second Mortgages: Fixed Rate Program
A Home Equity Loan is best when you know the exact amount you’ll need and the length of time you’ll need it. A Home Equity Loan allows you to lock in a fixed rate with a consistent monthly payment over a set period of time, and your interest rate never changes. So, if a variable rate makes you nervous, a fixed-rate Home Equity Loan might be the way to go.
Contact one of our loan officers to help determine which loan is best for you!