Navigating the financial world can sometimes feel like solving a puzzle. As your financial partner, we want to break it down into simpler terms so you feel empowered with your financial decisions. Many of us have homes, and these homes can be a treasure trove when it comes to financial solutions. Let’s chat about two key ways to harness this potential: Home Equity Loans and Home Equity Lines of Credit (HELOCs).

Home Equity Loans vs. HELOCs: A Quick Breakdown

Both of these options revolve around tapping into your home’s value – that’s the difference between what your home’s worth now and what you owe on your mortgage.

Home Equity Loans: Think of this as a one-time deal. You get a lump sum of money and pay it back in fixed installments. The interest rate? It stays the same for the life of the loan.

HELOCs: Picture this like a credit card, but tied to your home’s value. You can borrow money when you need it and repay it. However, the interest rate can change over time and is variable since it is tied to Prime Rate.

While both can be handy tools for homeowners for things like paying for renovations, consolidating debt, and to help pay college tuition – it’s essential to remember that since your home backs these options, there can be a lot at stake.

How Credit Unions Can Help

It’s no secret that the housing market’s been a bit of a roller-coaster lately, but credit unions are standing strong – ready to help you navigate. We’re here not just to offer financial help, but also to give you the lowdown on the best choices for your situation.

Home equity loans have become a hot topic. They offer homeowners a chance to tackle various financial needs, especially in these unpredictable times. With household debt on the rise, HELOCs are emerging as a lifeline for many and can offer a cushion against economic bumps.

The heart of our mission here at First Financial is to keep you informed. We want you to know all the ways you can use the equity in your home. We’ve made it more convenient than ever to explore your options. Gone are the days of endless paperwork and waiting weeks for loan approvals. Visit us on the web to apply online, 24/7.

Home Equity Loans and HELOCs are tools that can open doors to financial flexibility. And credit unions? We’re your friendly guide. With a mix of education, technology, and our unwavering commitment to you – we’re here to empower your financial journey.

To learn more about your Home Equity Loan* or HELOC** options as a First Financial member, call 732.312.1500 Option 4 or visit one of our branches.

*First Financial FCU (FFFCU) will waive Home Equity Loan closing costs at inception of loan. If loan is terminated within the first 2 years of opening, closing cost waiver is revoked and the borrower(s) will be required to pay back closing costs in full to FFFCU. A First Financial membership is required to obtain a Home Equity Loan, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. See FFFCU for details or visit firstffcu.com for all current rates. Home Equity Loan rates for financing up to 80% of appraised value less other mortgages.

 **Home Equity Line of Credit LTV up to 70%. LTV= Loan to Value Ratio. Rates will vary with the market based on Prime Rate and may change quarterly. Subject to credit approval. Available on primary or secondary homes only. A First Financial membership is required to obtain a home equity line of credit, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. Subject to underwriting guidelines. See credit union for details.