There is Still Time to Take Advantage of a HELOC!

There is Still Time to Take Advantage of a HELOC!

Friday, September 10, 2021

The term refinance has been publicized non-stop for the last 18-months! Many consumers have taken advantage of the low interest rates and refinanced their mortgage. Rates are still very appealing, so if you are one who have not asked about refinancing, it is not too late to give Bruning Bank a call! But in this article, I want to touch specifically on home improvement projects. 

When consumers have home improvement projects, the usual practice is to refinance their current mortgage and take cash out from the equity they’ve built up in their home. A cash-out refinance keeps the process clean and everything wrapped up in one loan. With mortgages being refinanced to historic low interest rates, consumers may not want to go the typical route. What other options do they have? Bruning Bank has just the solution, a HELOC!

HELOC stands for Home Equity Line Of Credit. A HELOC is a separate loan that uses the equity built up in your home as collateral for a second lien against a consumer’s property. A HELOC does not affect your current mortgage. You can leave that low interest rate loan alone and still get the cash needed for those planned or unexpected projects. 

Bruning Bank has two options for HELOCs, fixed and variable rate. The option is yours. Both HELOC options have a five-year term, with interest only payments required monthly. Funds provided through the HELOC can be borrowed, paid down and borrowed again. It is a convenient and possibly tax-deductible method for borrowing funds. 

Qualification varies, so stop in today and visit with one of Bruning Bank’s mortgage specialists to see if a HELOC can help you fund the projects on your to-do list!

- Janice Nozicka, Director of Mortgage Lending, Mortgage Loan Officer (NMLS #474132)