If you have equity in your home, this is for you!
When you need access to some money, there are many options for borrowing. We’re here to help you make the best financial choice!
You may have a need for $10,000, but don’t have it readily available. If you own a home, we recommend you consider a Home Equity Line of Credit (HELOC). We offer both fixed and variable rates, with both rates being quite competitive in the financial industry.
To illustrate the difference between using the equity in your home or using a credit card, take a look at the chart to see how long it would take to pay off $10,000, and how much interest you would pay (assuming the percentage rate stayed the same the entire time).
HELOC
If you chose a HELOC and made the minimum payment of $150 each month, with a locked-in rate of 5.99%, you would pay it off in less than 7 years, and pay just over $2,200 in interest.
Perhaps you would decide to pay more than the minimum amount on your HELOC. Let’s assume you pay $300 per month. Both the duration of payment and the interest would go down considerably – to 3 years, and $1,003 in interest.
CREDIT CARD
If you chose to add $10,000 to a credit card, and made a $150 payment each month, assuming the national average credit card interest rate of 17.83%, you would pay it off in just under 25 years, and pay $31,710 in interest!
Please note that paying $150/month on this credit card may not be the minimum payment required. So let’s look at making a $300/month payment. This helps quite a bit, bringing the payoff duration to just under 4 years, and almost $4,080 in interest. But notice that it would take 10 more months to pay off and over $3,000 more with a credit card, than with a HELOC from FNCU.
We exist to help people with their finances. If you would like to borrow money and/or reduce your monthly payments, call or stop in to talk to a loan specialist. Maybe refinancing your home or auto, or consolidating debt could save you $3,000!
We would love to help put money back in your pocket! It’s what we do.
Learn more about our Home Equity options here.
1) Home Equity Lines of Credit (HELOC’s) are available for primary residences located in Nebraska or Pottawattamie County in Iowa. The fixed rate APR ranges from 5.99% to 9.50% depending on CLTV and credit score. Rates, terms and conditions are subject to change and may vary based on creditworthiness, qualifications and collateral conditions. All loans subject to approval. Applicants will be responsible for cost of appraisal, if required. The closing costs depend on the location of the property and the amount of the equity line. For Loan lines up to $100,000, closings costs typically range between $225 and $1,000. Payments based on 1.50% of outstanding balance at the end of statement cycle or $25 whichever is greater.
2) Credit card rate and savings example quoted are for illustrative purposes only. Minimum monthly payment amount varies per provider. Interest and months to payoff example based on no additional advances or charges. Savings based off making more than the minimum payment required.
3) Rate accurate as of 3/1/2019. Minimum payment based on 1.50% of outstanding balance at the end of statement cycle or $25 whichever is greater. Interest and months to payoff example based on no additional advances or charges.
