Top Four Reasons to Get a Home Equity Loan

Using Your Home's Equity When it Makes Sense

While it’s always important to carefully consider taking on a loan, sometimes a Home Equity Loan is the best way to finance a large purchase or project. This is especially true if the funds are used to add value to your home or achieve your dreams.

A Home Equity Loan lets you borrow a lump sum, secured by the equity in your home. At Credit Union West, if you don't have enough equity in your home to fund your project or purchase, it's not a problem. You can borrow up to 133% of your home's value.¹

What do people use a Home Equity Loan for? Here are the top four reasons to get a Home Equity Loan:

1. DREAM PROJECT: Home improvement, landscaping, solar panel installation or new pool
   
   Whether you're planning a full home renovation or simply adding a pool, a Home Equity Loan can help you finance your dream project and add value to your home.
   
   
2. MOMENTUS LIFE EVENT: Funding a wedding, adoption costs or college expenses
   
   From popping the engagement question to adding a new bundle of joy to your family, life has some momentous occasions. A Home Equity Loan can help with these large, once-in-a-lifetime costs, with a low fixed-rate and affordable monthly payment.
    
3. MEDICAL AND HEALTH COSTS: Medical bills, dental costs, fertility treatments, and emergency expenses
   
   Some medical costs are unavoidable and it's always a good idea to have a safety net. A Home Equity Loan can help cover your out-of-pocket costs, big and small, from an unexpected illness.
   
   
4. FINANCIAL WELL-BEING:  Debt consolidation or business expenses
   
   If you have high-interest debt or you're considering a high-interest business loan, you could save over the long run by consolidating or using your Home Equity Loan for your business expenses.

¹CLTV= Combined Loan-to-value
²Annual Percentage Rate.  Actual APR based upon many factors evaluated at the time of application, which may include, among other factors, borrower’s credit history, loan terms, and any applicable administrative/processing fees.  All loans are subject to credit review and approval.
³Variable interest rates calculated by index (prime rate as published in Wall Street Journal) + margin with a floor of 4.25% APR and a ceiling of 18.00% APR.  Rates are based on loan-to-value (LTV), credit qualifications, and performance.  HELOC insured/owner occupied product has a 10 year draw period with a 15 year repayment period.  HELOC uninsured/non-owner occupied product has a 20 year draw period with a balloon payment.  Rate is variable and may change monthly.
⁴Term based on amount financed.  Other restrictions may apply.

Tax deductibility:  Please consult a tax advisor regarding the deductibility of interest for home improvements.