LEARN MORE ABOUT HOME EQUITY

Equity can be a powerful tool. Why not tap into it?

NOT SURE WHETHER A HOME EQUITY LOAN AND OR LINE OF CREDIT (HELOC) IS RIGHT FOR YOU? Below are the most frequently asked questions that we hear.  

• WHAT’S HOME EQUITY?

  Home equity is the value of a homeowner’s interest in their home. Specifically, equity is the difference between what your home is worth and what you owe your lender. To determine this value, we look at the property’s current market value minus any balances owed on loans that are associated with a lien on the property.
  
  For example, if your home is valued at $300,000 and you have an existing mortgage of $200,000, you would have $100,000 in equity in your home. The equity of your home can fluctuate over time based on the payments made and the market value of your home.

• How Can You Use Your Home Equity?

  You can access the equity you’ve built in a variety of ways, including if you want to fund:

  • Home improvement projects

  • Debt consolidation (including high-interest credit cards)

  • Tuition or other ongoing expenses

  • Home repairs, such as window replacement, energy-efficiency projects, new roof, or unexpected expenses or home emergencies

• What's the difference between a Home Equity Loan and a HELOC?

  Both a Home Equity Loan and a Home Equity Line of Credit (HELOC) use your home's equity as collateral.

  A Home Equity Loan is a second mortgage on your home and is a fixed loan that involves a single disbursement of funds. It doesn’t replace your current mortgage; instead, it’s a second mortgage with a separate payment. For this reason, home equity loans tend to have higher interest rates than first mortgages.

  A Home Equity Line of Credit (HELOC)  is a lot like a home equity loan in that it’s a second mortgage on your home. The main difference is that you don’t get a lump sum of money upfront. Instead, a HELOC gives you a line of credit that you can draw from when you need it. The credit limit corresponds to the amount of equity you have in your home. You can withdraw HELOC funds at any time during the draw period. With a WEOKIE Fixed Rate HELOC you can opt for a fixed-rate loan with a low minimum payment of 1% of the balance (or $50, whichever is greater).

• Why are Home Equity Loans a good option?

  Whether a home equity loan is a good idea or not depends on your financial situation and what you plan to do with the money. 

  Interest rates for Home Equity Lines and Loans are typically lower than other forms of credit because your home is used as collateral – meaning the risk to the lender is less than with an unsecured loan. A lower rate means a lower cost to you.

  Highlights:

  • You may get a lower interest rate than with a personal loan or credit card.
  • If your current mortgage rate is low, you don’t have to give that up.
  • You can use the money for virtually any purpose.
  • Your interest payments may be tax-deductible. If you choose to use your home equity loan proceeds to improve your home, you may be able to deduct the interest from your taxable income* 

  * The interest may be tax-deductible; however, the eligibility depends on various factors. Individuals should consult with their financial adviser and/or attorney for advice.

• What will my interest rate be?

  CLICK HERE to view current rates and loan terms. 

• How can I apply?

  Our dedicated mortgage professionals will help you through the entire application and approval process. Choose a contact method below. 

  Options available

  • Call us at 405-235-3030 or 1-800-678-5363.
    M-F: 9am - 5:00pm (CT)
  • Apply ONLINE.
  • Complete THIS FORM and a rep will reach out to you.

  You do not have to be a WEOKIE member to apply. However, the primary applicant will have to become a member before the loan is funded.