Tap into it! Home Equity Loans

Tap Into It! Home Equity

We hear about using your home equity, but what exactly is it and how does it work?

As housing markets in our area continue to rise, many home owners are regaining equity. If you’re one of them, you may have recaptured financial power you lost during the market slump.

Cash in hand within 5 days!
Saratoga’s Credit Union offers great home equity rates with one of the quickest turnaround times in the county, 5 days!  Our highly efficient and knowledgeable loan officers are qualified to quickly complete your application on the spot. The industry standard can be up to 30 days. Choose a local credit union who can do it best, choose Saratoga’s Credit Union.

What exactly is home equity?
Your equity is the difference between your home’s current market value and what you owe on it. For example, if your home is currently worth $110,000 and your mortgage balance is $90,000, you have $20,000 in equity. You can increase your equity by paying down what you owe, and/or by making improvements that boost your home’s value.

Why does equity matter?
In many cases, you can borrow against your home equity and restore it later as you pay back what you borrowed. When you sell your home, the more equity you have after paying off your mortgage and any equity debt, the more money you can put in your pocket.

Why might I want to borrow against my equity?
The biggest reason is that it’s less expensive than almost any other way to borrow. Rates are low, and in some cases the interest can be tax-deductible (consult with your tax advisor for details). But there’s a major consideration: your property serves as security for an equity loan or credit line. If you can’t pay back what you borrowed, you might lose your home. That’s why many financial advisors suggest that an equity loan or line of credit is best suited to pay for something of long-term value such as home improvements, college tuition, or debt consolidation.

How can I find out more?
Come in and talk with us. We’ll be glad to help you decide whether a home equity line of credit or a loan is right for you. If it’s not, no problem. We have a number of other ways to borrow that won’t tie up your home equity.

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