Good news, homeowners! With home values rising steadily over the past few years, many people now have significant equity built up in their homes. And at Grow Financial, we now offer Home Equity Loans and Home Equity Lines of Credit (HELOCs) in as little as ten days.* However, the first step in leveraging your equity is making sure you do it responsibly. Let’s walk through both options to see which one is right for you.

Home Equity Loans

Did your insurance company tell you to replace your aging roof? Think about a Home Equity Loan. This option gives you a cash lump sum up front, which you pay back in fixed monthly installments over a set term. It’s ideal for a large, one-time expense, like a major renovation or paying off high-interest debt.

Advantages:

• Fixed interest rate means predictable payments
• One-time funding, perfect for big-ticket items
• Fast closing, in as little as ten days

Home Equity Line of Credit (HELOC)

A HELOC works a bit like a credit card. You receive approval for a maximum amount, but you only borrow what you need, when you need it. This flexibility makes it a solid choice for ongoing projects or future expenses.

Advantages:

• Variable interest rates and flexible repayment terms
• Option to pay interest only, or both interest and principal
• Fast closing, in as little as ten days

Learn more about choosing between a Home Equity Loan and a HELOC here.

Popular ways to use home equity

You can use the funds for anything, but it’s important to be strategic. Here are two common ways to put equity to good use:

Home improvements
Think about upgrades that add value, such as a kitchen remodel, bathroom renovation or energy-efficient window installation. These improvements might boost your home’s resale value in addition to improving your quality of life.

Debt consolidation
Using home equity to pay off other high-interest debt can save you money as part of a long-term debt-reduction strategy. This works if you commit to better spending habits moving forward.

Borrow with purpose

Tapping into your home equity can be a smart move when it aligns with your bigger financial goals. Just make sure every dollar you borrow has a job to do, whether that’s improving your home, reducing higher-interest debt or supporting your family’s future. While tapping into equity can be a smart financial move, it’s still debt — secured by your house. So, always borrow with purpose, not on impulse.

Have questions about whether a Home Equity Loan or HELOC is right for you? Let’s talk it through. Call us at 800.839.6328, ext. 2694, or send us a message today and our Real Estate team will reach out.

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• Home Education