Owning a home isn’t just about having a place to live—it’s also a way to build equity that can help you reach your financial goals. You start accumulating equity with your down payment and your initial mortgage contributions. Over time, as your loan balance decreases, your equity grows, giving you the flexibility to finance home improvements, cover college expenses, consolidate debt and much more.
Understanding Your Options
There are two main ways to tap into your home’s equity:
Home Equity Freedom Line of Credit (HELOC): Think of this like a credit card backed by your home. It has a dual-purpose feature that allows you to use it as a line of credit and a fixed loan*. You can borrow as you go—like a credit card—and only pay interest on what you use. Or, if you prefer steady monthly payments, you can lock in up to three fixed term loans at one time.
Home Equity Loan: You borrow a lump sum up front with a fixed interest rate and fixed monthly payments. This is ideal for one-time expenses where you know the cost.
Ways You Can Use Your Home’s Equity
Home improvements
Turn your renovation dreams into reality. Whether it’s a new kitchen, a pool or landscaping, your home’s equity can fund indoor and outdoor projects. Choose a lump sum home equity loan for a single big project or a flexible HELOC for ongoing upgrades.College and school expenses
Your home’s equity can be a smart alternative to traditional student loans, potentially saving on interest. A home equity loan is ideal if tuition or fees are due all at once, while a HELOC offers flexibility to cover multiple semesters or other education-related expenses over time.Debt consolidation
Simplify your finances by consolidating high-interest debt. This allows you to combine multiple monthly bills into one payment. Both home equity loans and HELOCs may offer lower interest rates than credit cards.Life events
Big milestones—weddings, new babies or major family celebrations—can be costly. Use your home’s equity to finance these moments without dipping into savings.Emergency expenses
Unexpected costs like medical bills, car repairs or urgent home fixes can be stressful. A home equity loan gives you a lump sum to cover a big, one-time expense, while a HELOC provides ongoing access if costs continue to arise.Travel costs If you’re planning a big family trip or once-in-a-lifetime experience, tapping into your home’s equity can help. Home equity loans or lines of credit give you the flexibility to fund transportation, book accommodations or cover activities, making it easier to create memories without financial stress.
Getting Started
Borrowing against your home’s equity is an important financial decision, and you don’t have to navigate it alone. Our members have access to MyConcierge™—your go-to resource for guidance on spending, saving and planning for the future. Concierges are local Members 1st associates who can help you explore home equity loans and HELOCs, answer questions and find the option that fits your goals.
*Fixed-Term Option: You may lock in all or a portion of your line as a fixed-term loan up to three fixed terms at one time. Terms available from one year to 15-year maximum. Minimum $5,000 to lock-in. Fixed-term APR may vary based on term chosen. Your first fixed-term lock option is free and subsequent lock options are subject to a $100 processing fee. Balances you choose to lock in at the fixed rate of interest must be repaid in substantially equal monthly payments of principal and interest. The total monthly payment under the Line of Credit will include repayment of the total of all advances under the Line of Credit to date, in addition to and including the advance(s) for fixed-term lock option(s).
