A Better Way to Borrow
A Home Equity Loan is a smart and flexible way to leverage the value of your home for the things that matter most. Whether you’re planning a home renovation, consolidating debt, covering unexpected expenses, or pursuing other financial goals, a Home Equity Loan gives you access to funds when you need them. With competitive rates and the convenience of borrowing as you go, it’s a resource that puts your home equity to work for you.
What is a HELOC?
A HELOC, or Home Equity Line of Credit, is a revolving credit line that allows you to borrow against the equity in your home. Think of it as a credit card but secured by your property. The line of credit you’re given is a set amount to borrow against, based on the equity you have in your home. Unlike a traditional loan with a lump sum, a HELOC gives you the flexibility to borrow funds as needed during the draw period. The draw period works similarly to a credit card in that you can borrow up to your approved amount, and when paying down it pays on both interest and principal. At TCU, payments are amortized over 20 years.
HELOCs are ideal for homeowners with significant equity who need ongoing access to funds for large expenses or financial flexibility. They’re a practical way to use your home’s value to invest in your future while maintaining control over how much you borrow and repay.
TCU members can borrow up to 90% of the value of the home. Closing costs can usually be included in the loan and are generally under $600.
What Is Right for You?
HELOC vs. FIXED RATE HOME EQUITY LOAN
When deciding between a HELOC and a Fixed Rate Home Equity Loan, it’s important to understand how they work and the scenarios where each one makes sense. Both allow you to tap into the equity in your home, but they offer different benefits depending on your financial needs.
HELOC
As a revolving line of credit, HELOCs function similarly to credit cards, with the flexibility of borrowing money as needed during a set draw period while paying interest only on what you use. The interest rate is typically variable and can fluctuate over time.
Best For:
- Projects or expenses with unpredictable costs, such as home renovations or medical expenses.
- Ongoing financial needs, like funding education over several years.
Those who want the flexibility to borrow as they go.
Fixed Rate Home Equity Loan
A Fixed Rate Home Equity Loan provides a lump sum upfront, with a set interest rate and predictable monthly payments. This option is ideal for those who know exactly how much they need to borrow and prefer stability in their payment schedule.
Best For:
- One-time, large expenses such as consolidating debt or financing a major home improvement project.
- Those who prefer predictable payments and protection from interest rate fluctuations.
No matter which option you choose, both offer a way to access the equity in your home to achieve your financial goals. Consider your budget, the nature of your expenses, and your preferences for flexibility or stability to make the right decision.
Dakota Lockhart
Home Equity Loan Officer
DLockhart@TelCommCU.com | 417.891.1001
NMLS # 1813488
I’ve had the privilege of spending my entire adult career at TelComm Credit Union, where I’ve held various roles over the past twelve years. This journey has allowed me to form meaningful connections with members through different chapters of their lives. Currently, I’m serving as Home Equity Loan Officer, a position I truly love. For the past 7 years, I’ve had the opportunity to guide hundreds of members toward financial success and help them reach their goals. Life can be unpredictable, and as a parent raising three young kids in Marshfield, I can definitely relate. Originally from Springfield, I’m a proud Kickapoo graduate. My favorite places in Springfield include Bass Pro, fajitas at Amigos and Buc-ees for snacks on the way home. I love the growth I see in our community and the many opportunities to connect.
I am excited to reach more of our community and help more members reach their goals!
