Personal Loans vs HELOC for home improvement
When it comes to loans for home improvements you can choose between a personal loan or a Home Equity Line of Credit. When it comes to personal loans, you can receive funds faster and you don’t need to use your home as collateral. On the other hand, HELOC's generally offer lower interest rates, but they require your home to serve as collateral for the loan.
Personal Loans*
Home improvement loans are flexible personal loans you can use for any purpose, including enhancing your home. The loan amount is disbursed to you in a single lump sum, with repayment in monthly installments with interest over a specified period. Opting for a home improvement loan (Personal Loan) makes sense when you have a clear idea of the overall project cost and if you don’t have enough equity in your home.
With a Home Improvement Loan (Personal Loan) you'll receive:
- Competitive Rates
- No Prepayment Penalty
- Flexible Terms
- MEMBER’S CHOICE™
- Apply for a Personal Loan
- *Membership qualifications apply
Home Equity Line of Credit (HELOC)*
A Home Equity Line of Credit (HELOC) is an open-ended mortgage ideal for recurring expenses such as home improvement costs. Borrow up to 90% of the appraised value of your home, less the balance of your first mortgage loan. You may access the credit line for a period of five years, and only make payments on the amount you use.
With a Home Equity Line of Credit you'll receive:
• No prepayment penalty
• Competitive interest rates (Consult your tax advisor regarding deductibility of interest.)
• Low closing cost
• Up to 90% loan to value available, depending on credit
*Membership qualifications apply
A Share Savings Account with a $5 minimum balance is required to establish and maintain membership.