THEWAVE F L O R I D A C R E D I T U N I O N Are you a homeowner in need of funds? Your home could be the solution with a home equity loan! First, what is home equity? HOME EQUITY = MARKET VALUE OF HOME - MORTGAGE BALANCE When the equity you have in your home grows large enough, you can use it as collateral for a loan. There are two main types of home equity loans for which you can leverage your equity. The first is a home equity loan , or HEL. With a HEL, you borrow a fixed amount of money in one lump sum. You then pay that money back over a set amortization schedule. You can use those funds for whatever you like, such as funding renovations projects or even a big vacation! A home equity line of credit , or HELOC, works more like a credit card or personal line of credit. You’ll be able to borrow an approved amount over a set period, commonly known as the draw period. During that time, you can borrow money as needed. As you pay down the principal balance, your credit will revolve, allowing you to use it again. You only pay interest on the amount borrowed, and can use as much or as little as you need. Which home equity loan is right for you? It depends on what your needs are! A HELOC will typically be the preference for those who are making home improvements over time. Those looking to consolidate debt or pay for a big-ticket item like a vacation or wedding may prefer a HEL. If you’re curious as to what a home equity loan payment may look like or want some more help in deciding which loan type is right for you, Florida Credit Union o ers free home equity loan financial calculators at . Home Equity Loan vs. Line of Credit? M A Y 2 0 2 2 HOME EQUITY LOAN VS. LINE OF CREDIT HOME EQUITY LOAN HEL Borrow a fixed amount of money in a lump sum Interest is paid on the principal balance Commonly used for: bi -ticket items such as a vacation or weddin HOME EQUITY LINE OF CREDIT HELOC Borrow only the amount you need Interest is paid on the amout used Commonly used for: makin home improvements If you’re ready to apply, scan the QR code, stop by a branch or call us at 800-284-1144 .