How to Use Home Equity
What is Home Equity?
Home equity is simply the value of a homeowner’s ownership in their home. It’s equal to the current fair market value of the home minus any mortgage balance (Current Appraised Value - Mortgage Balance = Home Equity). Homeowners can utilize a variety of tools to determine the value of their home such as online calculators, comparative market analysis, professional appraisers, and so on. Increasing the equity in a home provides homeowners more financial flexibility when looking to refinance their mortgage, purchase a new home, sell their current house, or open a home equity line of credit.
Using Home Equity
For many people, their home is their biggest investment, so much of their net worth is wrapped up in it. Home-equity-based credit allows homeowners to access the equity in their homes, at costs that are often lower than conventional consumer loans. The money can be used for any major purpose.
Maybe a homeowner would like to build an addition onto their house, needs to consolidate high rate credit cards and loans, or pay a child’s college tuition. Maybe their daughter is getting married and they want to be able to give her the wedding of her dreams. For families who don’t have liquid resources to finance these big projects, accessing home equity can provide the necessary funds.
A Bethpage home equity line of credit (HELOC) is a revolving line of credit that offers a very flexible way for you to access home equity when and in the amount you need, for any purpose. With competitive low rates, no closing costs and low interest-only payments for the first ten years, it may be the solution you need to meet major expenses in your life.
Applying for a Bethpage HELOC is quick and easy so, if you’re ready to reap the benefits, get set and go!
Explore the benefits and considerations of HELOCs so you can make good decisions about how to best use your home equity.
Now that you know what home equity is, you might be wondering “How much equity do I have in my home?” To calculate home value and equity, you need to first determine the market value of your home. We’ll tell you three effective methods. But don’t stop with knowing what you have now — learn the many ways of building home equity to maximize the value of your most important asset.
There are two main credit products that enable homeowners to make use of the equity in their home — home equity loans and home equity lines of credit (HELOCs). So what is a home equity loan and what is a home equity line of credit? There are important differences. Knowing all the benefits of a home equity line of credit can help you choose your best option.
“What can I use a home equity line of credit for?” That’s an important question. Homeowners can use a HELOC for home improvements, funding college education, paying for a wedding or other major events. They can also use home equity to pay off debt. Find out about the pros and cons of a home equity line of credit for each of these purposes and others.
If you own your home, you’re eligible to apply for a home equity line of credit. Lenders evaluate certain criteria to determine if you qualify, such as your credit history, employment, income and the amount of equity in your home. The first step in preparing to apply for a HELOC is using our home equity line of credit calculator to estimate how much money you could borrow.
Bethpage Home Equity Line of Credit
At Bethpage Federal Credit Union, we offer affordable home equity lines of credit (HELOCs) to help you make the most of the value you’ve built in your property. The benefits of a Bethpage HELOC include no fees, low-interest payments for the first 10 years, and fixed-rate pay-off options for all or part of your loan balance.
Apply for a HELOC today with Bethpage to get the benefits of our current competitive rates, freedom from closing fees, and expert advice and guidance.