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, which, for members of TelComm Credit Union, is 10 years. 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 principle. 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 of 10 years 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
I am lucky enough to have had my whole adult career with TelComm Credit union, Twelve years of growth within the same organization. My career has included many positions that has allowed me to build relationships with our members in different stages of their lives. My current role of Home Equity Loan Officer is by far my favorite. Over the last 7 years I have been able to counsel hundreds of members on their financial wellbeing and help them achieve their goals. I understand the chaos life can bring, as I am in the midst of raising 3 little humans in the small town of Marshfield. I grew up in Springfield and am a Kickapoo graduate. My favorite places in Springfield include Bass Pro, Fajitas at Amigos and Buc-ees for snacks on the way home. I love that our community is growing and that we have so many opportunities to connect.
I am excited to reach more of our community and help more members reach their goals!
