Accessing the equity built up in your home can make sense for many reasons. Whether it’s paying off high-interest debt, funding home renovations or taking advantage of a lower interest rate to make big-ticket purchases, applying for a home equity loan can be a highly beneficial decision.
Ways You Can Make Your House Work for You
As Generations Federal Credit Union says, your home is your biggest asset, so put it to use. The credit union is offering home equity loan rates as low as 3.15% APR* for terms up to 15 years to help members meet various financial goals by using the value of their homes to their advantage.
One example of how you can use a home equity loan to advance long-term financial planning is to make smart improvements to your house. Using a home equity loan to remodel a bathroom or kitchen, for example, can help you add tens of thousands of dollars to the value of your property when it comes time to sell your home. And in the meantime, you get to enjoy a more modern décor.
A home equity loan also can be used to consolidate debt and improve your monthly cash flow. The higher interest rates charged on debt such as credit cards or personal loans can mean high monthly payments that can take years to pay down. By accessing the equity in your home to pay off your debts, you can benefit from a lower interest rate and the ease of one monthly payment that could enable you to become debt free sooner.
How to Get a Great Home Equity Loan
When deciding to take out a home equity loan, it’s important to do your research and find a lender and loan that suit your circumstances. As with any loan, you will want to ensure that you get a good rate and low fees so that you can make the most of your finances.
Generations FCU knows how important it is for its members to find the right home equity loan. In addition to low rates, the credit union offers loans with no closing costs beyond the mandatory government charges and title insurance. With a minimum loan of $8,000 and terms from five to 15 years, you’re free to use your home equity for whatever you require.
You also can benefit from a fixed monthly repayment plan and flexible payment terms from semi-monthly to monthly. Your interest payments might even be tax deductible, so check with your tax advisor about your situation.
Generations FCU makes it easy to apply for a home equity loan via an online application form. You also can call 210-349-5626 or visit a local branch to learn answers to any of your questions about your unique situation. To be eligible you must live, work, worship, volunteer or attend school in Bexar County, Texas.
*Annual Percentage Rate. **Generations FCU will pay closing costs on new external equity loan applications. Loans paid off and closed less than 3 years from the loan origination date will require reimbursement of all closing costs. For loan amounts up to $100,000, closing costs typically range between $150 to $900. For loan amounts above $100,000 where the loan is for a homestead property, an appraisal and/or survey will also be required. The appraisal and survey (if applicable) are costs that must be paid up front by the member and are not reimbursable. A copy of both the appraisal and the survey (if applicable) will be given to the member once the order has been completed by the vendor. All closing costs depend on the location of the property and the amount of the equity loan. Offer excludes non-homestead loans and loans that are designated as an internal refinance of an existing Generations FCU loan or modifications of existing Generations FCU home equity loans. ***Prices vary for 1st and 2nd lien positions. Loan minimum $8,000. Loan maximum of 80% of appraised value (Texas regulation). Legal, Title and Flood Search fees to be paid by credit union. Rates and terms may vary based on creditworthiness. We are an Equal Opportunity Lender. The credit union makes loans and extends credit without regard to race, color, religion, national origin, sex, handicap or familial status.
Generations Federal Credit Union is a GOBankingRates client.