A home equity line of credit, or HELOC, is a flexible way to borrow money against the equity in your home. And right now, Goldenwest and USU Credit Unions are making it even more affordable with a special promotional rate. When you draw $10,000 or more at one time on your new or existing HELOC, you can enjoy 1.99% fixed APR through the end of 2017 with no opening, closing, or appraisal costs.

If you have built up enough equity in your home, a HELOC can be opened and used similarly to a credit card, but at a much lower rate.

What can I use my HELOC for?
• It is a common misconception HELOCs are used solely for home improvements. While this can be beneficial to add value to your home, a HELOC can be used for anything from education expenses to a dream vacation. Another great use for a HELOC is to consolidate your debt, since HELOC rates are often much lower than credit card rates. You can continue to pay off your debt, but with much lower payments.

How much can I borrow with a HELOC?
• The amount you can borrow depends on the equity you have built in your home. In general, lenders will allow you to borrow 75-85% of the home’s appraised value, minus what you still owe on the home. For example, if you own a home appraised at $200,000 and you have paid $100,000 down on the mortgage, your HELOC lender may take 85% of the value (.85 x $200,000 = $170,000) and subtract what you still owe ($170,000-$100,000 = $70,000). In this scenario, you could be approved for a $70,000 HELOC.

How do I pay off my HELOC?
• You can pay off your HELOC in monthly payments, similar to a credit card. Or you can pay it off the balance all at once. You are charged interest on the HELOC outstanding balances.

Should I apply for a HELOC?
• If you have a stable income and could benefit from extra cash for home renovations or other projects, a HELOC may be a good idea. If you use it for the right purposes, a HELOC can be a very affordable way to make the most out of your most valuable asset, your home. Plus, as a bonus, interest paid on your HELOC may be tax deductible. (Consult a tax advisor for details.)

Call or visit any Goldenwest or USU Credit Union branch today and to learn more about the possibility of a HELOC to help achieve your financial goals.

Promo rate on advances of $10,000 or more on new or existing HELOCs. Promo rate good on advances made thru April 30, 2017. 1.99% fixed Annual Percentage Rate (APR) will remain on qualifying advances through December 31, 2017.

For more information, and details of the promotion, visit Home Equity Line of Credit.