Three Reasons to Tap Into Your Home's Equity
The equity in your home is a ready source of low cost funds for almost any purpose. Here are 3 good reasons to consider tapping into your home's equity.
1. You have a major expense that requires financing. Things like:
- home repair or improvement to add an extra bedroom or a pool
- energy upgrades like solar panels
- special events such as a wedding
- the opportunity to build a business
2. Consolidate other high interest debt to lower your rate.
The national average annual percentage rate for credit cards is 17.27% according to creditcards.com. You might have student loans, retail store credit cards or other high cost debt too. Consolidating with a home equity line of credit at a much lower rate makes good financial sense.
3. Take advantage of today's low rates.
Interest rates are still low, so now is a good time to consider a home equity line of credit. For example, NGFCU recently dropped its HELOC variable rate form 4.00% Annual Percentage Rate (APR) to 3.75% APR.1 Rates may rise again in the future, so it might be a smart move to lock up a low rate soon.
Does a HELOC make sense for you? Contact us to find out. Call 800.633.2848 or email firstname.lastname@example.org. If you are ready to refinance, you can apply online.
1. APR = Annual Percentage Rate. As of March 5, 2020, this interest rate is 4.00% variable and subject to change monthly. The APR is based on the average of the 11th District Cost of Funds and US Treasury Securities adjusted to a constant maturity of 1 year, rounded to the nearest 0.25%, with an added margin of 2.75 percentage points. Maximum rate increase cap of 3 percentage points per year and 6 percentage points for the life of the loan. Maximum CLTV is 70%.
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