Home Equity Loans
Home Equity Loans for Dreams Along the Way
A home equity loan from Thrivent Federal Credit Union can help meet your cash needs for home improvement projects, emergency reserves or education savings. Your home serves as the collateral for a home equity loan that can help you achieve a goal or plan for the unexpected.
We offer three types of home equity products:
- Fixed rate loan
- Adjustable rate loan
- Line of credit
Here are some additional details about each type to help you decide which will work best in your situation.
Home Equity Fixed Rate Loan
Fixed rate loans offer one locked-in interest rate over the life of your loan. This type of loan may be right for you if:
- You are looking for a uniform payment throughout the life of your loan.
- You seek additional security from changes in the interest rate environment.
- You intend to stay in your home for the life of your loan – because the longer you pay on the loan, the more money goes toward your principal as you reach the end of the term, even though your payments stay the same!
Home Equity Adjustable Rate Loan
Adjustable rate loans offer the flexibility of a lower rate up front, with the possibility of rate increases after a fixed period of time. This type of loan may be right for you if:
- You are looking for a low fixed rate for at least 5 years.
- You desire a low payment.
- You are comfortable that your interest rate will reset every 5 years.
- Or you plan to pay off or move by the end of the initial rate period and therefore aren't concerned about future rate increases.
Home Equity Line of Credit
A variable rate home equity line of credit works more like a credit card. It offers the ability to draw funds as you need them and only pay interest on the amount you have drawn. This type of loan may be right for you if:
- You do not need all of your funds at closing, but will have a need in the future.
- You are looking for peace of mind knowing you have a competitively priced reserve fund available to meet any unexpected emergencies, like medical, home repair, etc.
- You want easy access by credit card, checks, online banking transfers or speaking to your Personal Banker.
Guidelines For When to Use a Home Equity Line of Credit
|Appropriate Use||Inappropriate Use|
|Purchases that appreciate in value. For example, real estate, remodeling or education that will promote future earnings (college tuition).||Purchases that depreciate in value. For example, travel, furniture, clothes or entertainment.|
|Reserve funds for emergencies. This could include job loss, medical emergencies, vehicle or home repair.||Cash advances for day-to-day living expenses.|
|Consolidating debt for the first time.||Consolidating debt for the second or third time.|
|Things you need.||Things you want.|
The interest may be tax deductible.1
Contact a Member Service Representative to discuss your home equity loan options.