Home Equity CreditLines: What Are They, and What Are Their Benefits?

Home equity is the difference between your home's market value and the outstanding balance of your mortgage. Over time, the value of your home generally increases as the amount of your loan decreases, increasing the equity in your home.

SLFCU’s Home Equity CreditLines can put your home’s equity to work for you by providing financing for unexpected bills or major expenses like home improvements, debt consolidation, and even college tuition. Here are three reasons you may want to consider getting a Home Equity CreditLine to finance your next big project or purchase:

1. You can borrow money at a lower interest rate than that of a personal loan. In May 2022, personal loan interest rates ranged from 4.49% all the way up to about 35.99% – depending on your credit score, annual income, and other factors.¹ For credit cards, interest rates are often in the double digits as well – averaging about 16.45% in 2021.² With SLFCU, you can get a lower rate when you apply for a Home Equity CreditLine. To view and compare our most up-to-date rates, visit slfcu.org/Rates.
2. Request a Home Equity CreditLine Access Card to make it even more convenient to access your money. An Access Card gives you the freedom and flexibility to withdraw money from your Home Equity CreditLine directly from an ATM, or use the card to make a payment like you would with a debit or credit card. Your payment is recalculated with each withdrawal, and you make payments only on the amount you borrow.
3. Avoid pre-payment penalties. Some financial institutions will penalize you if you pay off your loan early by charging a fee – typically about 2% of your remaining principal balance.³ With an SLFCU Home Equity CreditLine, you can borrow what you need and pay it back before your loan payoff date with no penalties.

To learn more about our Home Equity CreditLines or to apply, visit slfcu.org/HomeEquityCreditLines or visit our Juan Tabo or Jefferson branch to speak with a home loan officer.

1. nerdwallet.com/best/loans/personal-loans/personal-loan-interest-rates
2. forbes.com/advisor/credit-cards/average-credit-card-interest-rate/
3. forbes.com/advisor/mortgages/prepayment-penalty-what-it-is-and-how-to-avoid-one

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