Smart ways to tap into your home’s value – and when to hold off
June is American Housing Month, and whether you’re a first-time homeowner or you’ve been in your place for years, now’s a great time to take a closer look at your home’s financial potential.
If your home has gained value, you may be sitting on a powerful financial tool: home equity. But just because you can access it doesn’t mean you should – at least, not without a plan.
What is home equity?
Home equity is the difference between what your home is worth and what you still owe on your mortgage. As your home’s value increases or your mortgage balance decreases, your equity grows.
With a Home Equity Line of Credit (HELOC) or a Fixed Home Equity Loan, you can borrow against that value – often at lower interest rates than credit cards or personal loans.
Smart uses for home equity
Using your home’s equity can be a great financial move when it’s used strategically. Common uses include:
🛠️ Home improvements that add long-term value
🏫 Tuition or education expenses
🩺 Emergency medical costs
💳 Consolidating high-interest debt
If you’re borrowing to improve your financial situation – or to invest in your home’s future – it may be a smart move.
When to think twice
Equity isn’t “free money,” and using it for non-essential expenses like vacations, luxury purchases, or risky investments could backfire. Remember: your home is the collateral.
Ask yourself:
- Can I comfortably afford the monthly payments?
- Am I borrowing for a long-term benefit?
- Do I have a backup plan if my income changes?
Make the most of your home’s value
At Rize Credit Union, we’re proud to help our members make confident financial decisions. Whether you want flexible access to funds through a HELOC or a predictable payment with a Fixed Home Equity Loan, we’ve got options that fit your goals.
Ready to put your home equity to work? Let’s talk through your options – without the pressure.