As you pay down your home mortgage loan, you build value in your home called equity. When you need money for a major expense, this equity could help you tap into the funding you need. Could a home equity loan help you pay for a major purchase? Here is what to know.
Home equity loans let you borrow money using the value you have built up in your home. The amount of equity you have is equivalent to the amount of money you put into your house through your home mortgage loan payments. With a home equity loan, you get a lump sum of cash and then repay the amount that you borrowed over time. The interest on the loan is tax deductible, making it attractive to homeowners who need to pay for a one-time major expense.
Let GCS Credit Union help you decide if a home equity loan is the right answer for your needs. Our credit union in O’Fallon offers a range of loan options with competitive interest rates for easy repayment. To learn more, contact us today at (628) 797-7993.