You might have money in your house. Not under the mattress, not in a coin jar, but in your capital. So what is equity? It’s simply the difference between what your home is worth and what you owe. To ease the pain of paying off your mortgage, remember that every time you make a payment, you’re building equity!
Equity can be used as collateral to secure a loan or home equity line of credit (HELOC). The more your capital increases, the more borrowing power you have. With a home equity loan, you borrow a lump sum of money to be repaid over a fixed term, usually 5 to 15 years, giving you the security of a fixed rate and a consistent monthly payment.
A HELOC is very similar to a credit card. You can borrow money as needed, up to your credit limit. A HELOC is generally a variable rate loan, so your monthly payments will change based on your outstanding balance and fluctuations in prime interest rates.
Altane offers a unique interest-only HELOC that helps keep your payments affordable. You can choose a fixed or variable rate and enjoy a generous recovery period.
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Now here comes the fun part. You can use the money for anything. Literally. For example, when you need money to remodel your kitchen or bathroom, do a landscaping project, for debt consolidation, college expenses, vacations, really whatever you need, a home equity loan or HELOC might be your best bet.
Interest on a home loan or HELOC can be tax deductible if you tap into home equity to significantly improve your home. Please discuss this with your accountant.
Meet the dynamic team mortgage specialists at Altana FCU. They’re ready to walk you through your options and find the fit that’s right for you.