Borrowers use home equity loans for some of life’s larger expenses, because homes tend to have a lot of value to borrow against. For example, you find that a lot of borrowers want to:
• Remodel or renovate the house
• Pay for a family member’s college education
• Finance the purchase of a second home
• Consolidate high-interest debts
• Take that much-deserved dream vacation
The equity in your home is calculated by using the appraised value as stated by an approved appraisal company. The difference of the appraised value minus any outstanding mortgages equals your total equity. A credit union representative will then help you determine the amount available for a line of credit. Simply write a check to access your HELOC account.
Home equity loans are attractive to borrowers for a few main reasons:
• Extended repayment schedules help to keep your payment low and affordable
• Have a lower interest rate (or APR)
• Easy access Line of Credit
• Payments on a home equity loan may be tax deductible
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