You’ve seen the commercials. A bunch of dudes dressed up in “BILL” tank tops, advertising something called a “HELOC.” But what the heck is a HELOC?
First and foremost, HELOC is an acronym!
HELOC stands for Home Equity Line of Credit.
Home – Y’know, that thing you live in.
Equity – Take your home’s worth, minus how much you owe on your mortgage. Boom. That’s your equity.
Line – How we get money from Point A (us) to Point B (you).
Of – …You got this one.
Credit – Ahhh, credit. Good stuff. Basically, it means we give you money and you make payments back to us over time.
How are HELOCS helpful?
HELOCs often have lower interest than other types of bills. First, imagine turning all your various bills into just one bill—that’s consolidating. Then imagine that one bill with a lower interest rate than your previous bills—that’s saving money!
The potential of a Home Equity Line of Credit will always depend on the individual. Your home, credit, equity, and more are all taken into consideration when getting a HELOC.
Is a HELOC right for you? 
Take our super easy quiz to find out!
Question #1: Do you own a home?
- NO 🡆 You can’t have equity in a home…without a home. Sorry, pal.
- YES 🡆 Great, congrats! Move to Question #2.
Question #2: Have you owned your home long enough or made enough payments to have a good chunk of equity built up yet?
- NO 🡆 Keep on building up that equity! Come back when you have about 15-20% of your home paid off.
- YES 🡆 Right on. A HELOC might help you save money! Be sure to take a look at ours while you’re here.
What can you do with a HELOC?
HELOCs are one of the most diverse financial products out there! They’re like the garlic of loans. You can use it on pretty much anything. (As long as it’s legal, of course.)
A popular use for HELOCs is to pay off high-interest debt. This could be from medical bills, credit card debt, student loans and other types of payments you make that may have high interest rates.
HELOCs are also often used for home renovations. It makes sense to take what you’ve invested into your home and reinvest in it! Have you been dreaming of a bigger kitchen? Covered patio? Heated bathroom floors? A HELOC could make your dream renovations a reality.
Want to learn more about HELOCs?
This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.