It's HELOC season for Travis members

Now that the holidays are over, it’s time to consolidate those high-interest credit cards and do some home improvement projects. Start the New Year off right with a secured home equity line of credit (HELOC). One of the smartest financing tools in the current economy is your home. With many home values on the rise, it makes good financial sense to use the equity value built up in your home and pay one-time or on-going expenses, do some home improvement projects or consolidate higher-interest debt.

A home equity line of credit, also known as a HELOC, allows you to borrow against your home’s equity to make discretionary purchases or pay off debt. Like a credit card, a home equity line of credit lets you borrow up to a preset limit. Paying down the credit line offers you the flexibility to use the credit again as you need. While incurring additional debt may not seem like a wise financial decision on the surface, home equity lines of credit offer a variety of financial benefits for homeowners.

They’re relatively easy to open if you have plenty of equity in your home. (Equity is equal to the current value of the home minus the total outstanding mortgage balances). Although home equity lines of credit typically carry higher interest rates than an original first mortgage loan, the rates are often much lower than those charged by credit card companies and short-term personal loan providers. By using a HELOC to pay off higher interest debts, you can gradually pay off debt without struggling to keep up with rising interest charges. HELOC’s offer flexible monthly payments and you will only pay interest on the amounts you actually borrow at various times.

Using your home’s equity as a financing tool results in a lower interest rate than unsecured loans and credit cards. You can improve your monthly cash flow by reducing all of those high-interest payments. This tax-time advantage makes the effective interest rate even more attractive. Plus the interest paid may be tax-deductible, meaning your effective interest rate may be even lower!*

Pay no fees and get your funds quickly! Getting the funding source you need is a fast process and we waive the annual $50 HELOC fee if your balance is at least $5,000 on Dec. 31.

Our Mortgage Loan Consultants are here to help you. Stop by a branch, apply online at www.traviscu.org/real-estate or call us toll-free (888) 698-0000 to get started.

Real Estate

Tanya Robinson, AVP Real Estate

Tanya Robinson, AVP Real Estate Lending

 


APR=Annual Percentage Rate. Fully indexed APR is based on Prime Rate. Floor of 4.25%. The lowest rate offered is 4.50% APR and the maximum is 18%. At 4.50%, the interest payment on a $100,000 loan balance would be $375. Rate quoted as of November 18, 2016 is subject to change without further notice, and is based on 70% loan-to-value (LTV) or less and credit approval. Higher LTV and rate options are available. Interest-only minimum payments for the first 10 years, amortized over remaining 15 years. Owner-occupied primary residence and California property only. If account is closed within three years, a $500 early-closure fee applies. Other restrictions and fees may apply. Discount does not apply to existing Travis Credit Union HELOC loans. Member is responsible for applicable tax consequences associated with above offers. *Please consult a tax professional. Cannot be combined with other promotional offers. Some restrictions may apply. See account disclosure for complete details. This offer cannot be combined with any other print or online discounts, coupons or offers currently available on real estate loans. Annual fee on HELOC of $50 is waived if your balance is at least $5,000 on December 31.