When it comes to financing tools, a home equity line of credit (HELOC) is one of the most flexible options for homeowners.
A HELOC can be used for anything—for real!
Once you have approval for a HELOC, there are many options available to use the funds. Home renovation? Yes! Tuition? Yes! A vehicle? Yes! A vacation? Yes!
Some folks get a HELOC for a specific purpose, such as a bathroom remodel, and forget that their available credit can also be used for other things. For example, they can use an existing HELOC to pay off higher interest debt, launch a business or cover an emergency.
The flexibility of HELOCs can reduce stress
Homeowners with a HELOC can breathe easier when big ticket or unexpected expenses come up. Credit is available as needed, no new financing applications and lower interest charges than a credit card.
What’s the difference between a HELOC and a home equity loan?
A home equity loan provides a lump sum to be used for specific one-time costs. For example a home equity loan might be used to build an addition to you home.
A HELOC is an open line of credit that is often used like a credit card to cover expenses as needed. Interest accrues only on what is borrowed. As the principal and interest are repaid, the available credit can be used again.
One thing to keep in mind about home equity loans and HELOCs is that both financing tools use your home as collateral for debt, so use them carefully.
Using your HELOC
These simplest way to access HELOC funds is through Online Banking. Simply transfer the money from your Consumers HELOC to your checking account. You might also use checks or, drop by one of our offices to draw funds from your HELOC.
Where to get a HELOC
At Consumers, we offer HELOCs to homeowners whether or not their primary mortgage is with us. In fact, we love helping our members access cash at a competitive rate. For a limited time, you can get a HELOC with an introductory 5.99% APR* for 12 months! After a year, the rate will adjust to as low as 7.50% APR.
*This promotional, introductory Annual Percentage Rate (APR) applies only to new loans and collateral. Rate is effective as of December 18, 2024. The plan will convert to variable rate after the first 12 months. The APR is based on the WSJ prime rate (currently 7.50%) and may adjust monthly. After the introductory period, the APR can range from 3.25% to 22.99%. Approval and rate may vary based on credit history, term and security offered. Minimum qualifications for the introductory rate include 85% maximum combined loan to value and a minimum credit score of 660. Other restrictions may apply. Early termination fee of $300 if closed within first 24 months. Loan programs, rates, terms and conditions are subject to change at any time without notice. Third party closing fees may apply; contact us for a good faith itemization of such fees. Proof of acceptable hazard insurance will be required. Approval and rate may vary based on credit history, term and security offered. Other restrictions and fees may apply. Loan programs, rates, terms, and conditions are subject to change at any time without notice. Federally insured by NCUA.