What is a HELOC?

A PCU Home Equity Line of Credit is a flexible financing option that allows members to utilize equity in their existing home to access funds based on the value of their property.

Flexible Access to Funds –  A HELOC provides you with a revolving line of credit that you can access whenever you need it. This flexibility allows you to use funds for various purposes, such as home improvements, education expenses, debt consolidation, or emergencies.

Lower Interest Rates – HELOCs often have lower interest rates compared to credit cards and personal loans. This can save you money on interest payments over time, especially for larger expenses.

Draw and Repay Flexibility – You have the freedom to borrow and repay as needed during the draw period.  You pay interest on the amount you owe, not the entire credit limit.

Variable Interest Rates – While this can be a double-edged sword, variable interest rates associated with HELOCs could mean that if interest rates go down, your borrowing costs decrease. However, if rates rise, your costs could increase.

Potential for Home Value Growth – As you repay the borrowed amount, your credit line replenishes. If your home’s value increases over time, you might be able to access more funds due to the higher equity.

Large Credit Limits – HELOCs often offer higher credit limits compared to credit cards or personal loans, making them suitable for larger expenses like home renovations or medical bills.

Financial Flexibility – HELOCs can provide a safety net during unexpected financial situations or emergencies, giving you quick access to funds without needing to go through a loan application process.

Improvement of Home – Using a HELOC for home renovations or upgrades can potentially increase your home’s value, enhancing its appeal to potential buyers if you decide to sell.

Consolidation of Debt – You can use a HELOC to consolidate higher-interest debts, such as credit card balances, into a single, more manageable monthly payment.

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PeoplesChoice Credit Union
23 Industrial Park Rd.
Saco, ME 04072
NMLS# 449242

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