Understanding Home Equity Lines of Credit - Should You Get One?

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Understanding helocs

A Home Equity Line of Credit is something a lot of people consider at some point. However,a lot of people have only limited understanding of what one actually is and why you should get one.

What is a Home Equity Line of Credit?

A Home Equity Line of Credit, or HELOC, is designed to give you immediate access to cash, namely in the equity you have built up in your home. A HELOC does not give you a lump sum, but rather the ability to draw on the line of credit for a period of time (usually ten years) up to a specified limit. What you choose to draw is then repaid over a longer period, usually twenty years. Like mortgages, HELOCs can have variable or fixed interest rates. There is generally a cancellation fee if you choose to open the line of credit and then not use it. It should not be confused with a home equity loan, which does give a lump sum that is then paid off over a set amount of time. 

Finding The Loan That’s Right For You

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Loans help finance some of our biggest goals in life.  

They can provide access to possibilities that we can’t afford upfront —possibilities like going to school, buying a home or starting a business (to name just a few).

A loan is also one of the biggest financial commitments we make in our lifetime. Rushing into a loan without fully understanding how it will affect your budget can create a very stressful situation that can quickly spiral out of control.

Watch Out for These Scams

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home buying scams - things to watch out for when buying a home

If you are buying a home, then you're looking at making a huge purchase and a huge step in your life moving forward. So it is perhaps not surprising that home buyers are sometimes targeted by scammers. While some home buying scams are so obvious you wonder who falls for them, others have been known to catch even the otherwise savvy. These scams are especially dangerous if you are tired and stressed, as you are likely to be in the middle of the home buying process!

At Bellwether Community Credit Union, we want to keep you safe from any home buying scams, so we put together a list of common scams to look out for!

How Much of a Down Payment Do I Need?

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all about down payments

What is a Down Payment?

A down payment is a payment that you have to put down up front when purchasing an expensive good or service. A new house qualifies as an expensive good or service and therefore often requires a down payment up front to secure the good (the house) you are purchasing.

In some cases, these down payments are nonrefundable, even if the deal falls through. Moreover, the person making the purchase will have to get a loan (called a mortgage when purchasing a home) to cover the rest of the cost of the home at the time which they are purchasing it.

All About Credit Scores

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all about credit scores

Today's financial systems are driven by the credit score. Most people realize that having a good credit score is one of the most important tools they have in obtaining credit, and at a reasonable rate. But how much do you know about a credit score and its calculation? Do you know what a good credit score is to have? Let's take a look at this thing we call a credit score.