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Is the equity in your home working hard enough for you?

Have you considered a home equity line of credit (HELOC)? Now is the time to do so.

Although interest rates have remained historically low for the past few years, these days interest rates are starting to rise across the board. That means now might be the perfect time to consider using the equity in your home to pay off higher-interest-rate debt or credit card balances.

Our most important job at Members 1st Credit Union is to take care of our members, especially when they have a financial need. Depending on what you need the money for and your current situation, if a personal or note loan would be your best option, then that’s what we’ll advise. But sometimes a HELOC can save you quite a bit of money.

At Members 1st, we traditionally recommend a HELOC to anyone who owns a home with equity. If you’re not using that equity, and you’re carrying higher-interest debt, it’s like you’re sitting on an untapped gold mine. You can definitely save money on interest payments by using the many benefits of a HELOC.

Some people shy away from a HELOC because they have never had one, or because they worry about tying anything to their house. However, unless you’re planning on selling your home in the next six months, there’s no reason to not consider one.

Here’s how a HELOC works.

  • The amount is flexible, based on the equity you have in your home.
  • For 10 years, you can draw cash equal to as much as 90% of your home’s equity.
  • Because it is a line of credit, not a loan with a lump-sum distribution, you don’t start paying interest until you start using it. You only pay interest on what you use.
  • Once you have been approved, you can draw out cash against the line at any time without going through another loan approval process.

When members come in wanting a traditional loan for a big project – say new windows or siding – we tell them a HELOC is a better deal if there is equity in their home. Another benefit is your line of credit could essentially be bigger than the amount you need right now. This definitely would come in use should, five years from now, you have another home project or costly home repairs (such as a furnace unexpectedly going out in the middle of winter!). If you have a HELOC with additional funds on your line, you can simply write a check from that account without going through the approval process for a loan all over again.

Did you know we currently have a HELOC special for Members 1st Credit Union members who qualify? We’re offering a competitive home equity line of credit with a fixed 3.0% interest rate for three years. Be sure to visit one of our branches to see if you qualify and to get more information. It could help you to save money and best position yourself for your financial future.


Mattis office (314) 487-5628 | Festus office (636) 931-7144 | Toll-free (877) 487-5628

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