How many Pinterest boards do you have dedicated to home improvement projects? Thanks to HGTV and shows like Property Brothers and Fixer Upper, you have plenty of inspiration available to make changes to the biggest purchase you’ve ever made. The question is, how do you pay for that inspiration? We have the answer.
Did you know from the moment you buy your home you start building equity? In simple terms, equity is how much of your home that you actually own. Equity is calculated by subtracting the balance of your mortgage from the appraised value of your home. Your home’s equity is important because you can use it to give yourself a loan.
Are you limited to using your home’s equity only for home improvement projects? Absolutely not, but that is a very common use. Some people use it to consolidate debt, pay college or medical bills, and others use it for a big vacation.
“The most common use of funds through a Home Equity Loan or Home Equity Line of Credit is for home improvements. We also often see members using the funds to help pay for college, consolidate debt into one easy payment and even to purchase a new car,” says Jeff Ernst, Vice President of Consumer Lending. “Their home’s equity is often the largest source of funds available to a member at affordable interest rates.”
There are many types of home equity loans and lines of credit out there. At Members 1st, we offer something unique—our Home Equity Freedom Line of Credit. You can use the funds you borrow up to your available line of credit as you would as if this was a credit card (only you don’t get a plastic card). There’s an introductory rate and after that expires, your rate changes to our current rate at that time. As our rates changes, so will the rate on your line of credit. The unique part is that you can convert part or all of what you’ve borrowed into a fixed rate loan. This is called locking in a fixed rate and your rate won’t change again on that locked in portion. This offers flexibility and the freedom to manage your budget as you see fit. And there are no closing costs or application fees.
We also offer fixed rate home equity loans with competitive rates. With a fixed rate home equity loan, you get the amount of the loan as a lump sum, all locked in at that fixed rate. Because of that, you’ll have set monthly payments for a set time period, which makes it easier to factor into your budget. Just remember, the home equity loan will be in addition to your usual mortgage payment.
The equity in your home can be used to finance home improvements, college, debt consolidation, significant life events and unexpected expenses. Whatever your needs may be, we have you covered at Members 1st. We make it easy to get started, and the best part? No prepayment penalties and no closing costs.
Not yet a member of Members 1st? Open an account to get started.
Already a member? Great! Apply for your home equity loan online or from any of our convenient branch locations.
Members 1st is more than just a name—it’s a mindset. We're here to help members thrive and better the communities we serve.
Where others see dollars and cents, we see people and passions. And we offer a full suite of financial tools and services that help our members do more with their money.
Visit any branch or members1st.org to learn more.
Federally insured by NCUA. We do business in accordance with the Federal Fair Housing Law and Equal Credit Opportunity Act.
