With San Francisco real estate prices on the rise many people are pulling out the equity in their home to make important purchases, or to simply increase their money in their pocket. A Home Equity Line of Credit or HELOC from Embarcadero Federal Credit Union is a great option for those who realize the benefits of utilizing the equity in their home as collateral. Now is the time to take advantage of our new lower rates.
A HELOC differs from a traditional loan in that it is set up as a maximum amount of funds that can be borrowed, rather than a fixed dollar amount. For example, on a typical loan you may take out $50,000 for which you would be responsible for paying the entire balance plus the interest. With a HELOC you are promised a maximum amount of $50,000 and you can use as much of the money that you need up to that amount. You only pay interest on the amounts you borrow so if you don't use the line of credit, you don't have any monthly payments to make. Funds are typically drawn by check or can be deposited into your account based on your needs.
Common uses for a Home Equity Line of Credit:
- Paying off and consolidating high interest credit cards into one low rate
- Home remodeling or improvements
- Education expenses
- Unexpected medical expenses
- Financing a vehicle
Benefits of a Home Equity Line of Credit:
- Tax advantages - The finance charges you pay may be fully tax deductible (consult a tax advisor for more information)
- Flexible loan - can be used for any purpose
- Secured at prime rate
- No points loan
- Low loan fees range between $500 - $1000
- Loan fees are waived if you take an initial advance of $25,000 and reduced by 50% if you take out $10,000
- Only pay interest on the money you use
