Are you a homeowner looking to make some improvements to your existing home? Maybe you have a dream of opening up your own small business, or perhaps you’re wanting to consolidate your debt. You can tap into your home equity. If you’d love to make home improvements or simply need some additional funding for another life goal, you might want to consider taking out a home equity loan from Kinetic Credit Union.

With Kinetic Credit Union Home Equity Loans, there are a couple of different options to consider, depending on your specific situation: a home equity line of credit and a home equity loan. 

Kinetic Home Equity Line of Credit (HELOC)

First, a home equity line of credit (HELOC) is basically a line of credit, secured by your home, that you can use for anything. A HELOC works in a manner similar to a credit card, but without the high-interest rates. If you expect to have ongoing expenses, opening a home equity line of credit is the option for you. With this line of credit, you can borrow as you need, when you need it, and there’s a maximum limit set for you. With a 20-year term and a 10-year draw period, you have the flexibility to borrow on your terms. 

You have access to the entire credit line amount and the flexibility to spend as much or as little as necessary or as you want. With a line of credit, you will only pay interest on the amount you spend, which makes it different from a typical home equity loan, or installment loan, which will be explained next. 

Benefits to this type of loan include being able to use the money for anything, but you are susceptible to the possibility of increasing interest rates and potential closing costs. This type of loan application process is typically a little more involved and may take longer than an installment loan, but it may be well worth the effort for the freedom you’ll receive from the loan option. With any loan of this type, there is always the possibility that you may default on your loan if you do not make your payments within the terms of the loan.

Fixed-Rate Home Equity Loans with Kinetic

On the other hand, maybe you know exactly how much that renovated kitchen or building that new study for your new work-from-home gig will cost you. If that is the case, then Kinetic’s Home Equity- Fixed Rate option is for you. If you’re in need of a specific amount of money for any one-time expense, you’ll receive a lump sum amount. A home equity loan is a type of financing that is like a second mortgage. 

With this fixed-rate loan, you will lock in your interest rate and set up a monthly payment schedule, much like your first mortgage. How much you can borrow will be determined by how much of your home you own outright and a few other factors. You can check out our home equity loan calculator here and crunch the numbers yourself. 

There are also options for the length of home equity-fixed rate loans. You may select a 5, 10, or 15-year term and your interest rate will never increase, which might be comforting to know with the uncertainty of today’s market. Again, however, borrowing isn’t a risk-free action. Discuss your options with a trusted financial advisor or institution like Kinetic Credit Union. 

Why Kinetic Credit Union?

We want you to be certain though and confident in your decision. First or second liens are allowed for both of the options above and deciding what is best for your situation is our top priority. We’ll work with you to determine the best outcome and scenario for your specific situation and goals.

Kinetic Credit Union, located in Columbus, GA, proudly offers both HELOCs and fixed-rate home equity loans. You can apply online in as little as 20 minutes and receive your decision instantly, or, if you’d like to do more research and talk to a representative in our Residential Lending Department at 706- 320-8585 or email us at mortgages@kineticcu.com.