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Home repairs can be stressful, and between having a home that is under construction and worrying about having enough money to fund the project, you may be hesitant to start. Credit Cards may be an option to finance your next renovation, but what if I told you there was an even better option?

Our Home Equity Line of Credit, or HELOC, allows you to have the funds for home renovation at a rate lower than most credit cards! Let’s dive into what a HELOC is and how it can help you!

What is a HELOC?

The best way to look at a HELOC would be to look at it like a credit card that is dependent on your home’s value, where your credit limit is your home’s equity. This means that the amount you pay back each month is only what you spend plus interest, and in most cases, a HELOC has a lower interest rate than a regular credit card!

A HELOC is based on your home’s equity, which is determined by finding the difference between your home value and the mortgage you have on the home. The credit limit is how much that number is. So, for example, if your house is worth $200,000 and your mortgage is $160,000, your house’s equity would be $40,000. This also depends on when you are opening the line of credit, so the amount you get at the time of opening will remain the same unless you reapply**.

How Can a HELOC Help You?

A HELOC is more than just a great way to fund your home repairs to increase its value; it can also be an emergency fund! Between braces for the kids and a new pool, a HELOC is an excellent way of getting extra money without worrying about high-interest rates on a credit card.

Now that you know a little more about what a HELOC is and how it can help you, it’s time to tell you about our deal! During the month of March, we have a special HELOC promotion with a 3.69% APR* introductory rate that will rise to the current adjustable rate after 12 months, which is 8.49% APR as of March 1, 2023. 

*$1 share deposit required. Must qualify for membership. Must apply by March 31, 2023 to qualify for offer. Subject to credit approval. Offer is for new First Line HE loans and does not include refinances on First Community loans. Missouri and Illinois residents only. Minimum first advance of $1,000 on home equity loans. Offer of 3.69% Annual Percentage Rate on First Line Home Equity Loan is good for twelve months after closing date. After introductory period, rate adjusts quarterly to the Prime Rate as published in the Wall Street Journal plus .74%. That rate is currently 8.74%. The maximum APR that may apply is 18.00%.  NMLS ID # 684198. Federally insured by NCUA. Equal Housing Lender.      

**The First Line Home Equity has a five-year draw period with a minimum payment of $100 or principal plus interest, whichever is greater. The amount advanced is amortized over 10 years. Payment due date must be the 15th or last day of the month. The rate is indexed quarterly to the Prime Rate as published in the Wall Street Journal, plus .74%. The first transaction is a minimum $1,000 advance, subsequent advances can be as low as $500. 90% maximum loan to value. The Annual Percentage Rate (APR) is subject to change after consummation. The maximum APR that can apply is 18.00%. Offer of no closing costs does not apply to refinances with First Community. Missouri and Illinois residents only.