How to Unlock What Your House is Hiding

Sep 30, 2025 | Kris H.

OK, I will admit it. I hate moving and it has been more than twenty years since I have had to do it. Just the idea of moving and I feel like hives will break out!

On the opposite side of moving is an ageing house that needs TLC, but that requires money. I don’t feel like my savings account is spilling over with extra cash, so how do those new floors or a deck in the backyard become a reality? How do I make these investments in my home fit my finances?

Fortunate for us, I work with truly knowledgeable people at our credit union. They have taught me a thing or two about home equity loans and I need to share this news with you.

If you are interested in what your current home may be hiding from you, you are in the right place.

Unlock Potential

Of course, your home is where you live, but it can be so much more. Your home is a valuable financial asset that usually gets overlooked.

TTCU offers two flexible solutions to help you tap into your home's equity - Home Equity Lines of Credit (or HELOCs for short) and Home Equity Loans. These might seem like complex loans that are hard to understand but just wait until we break them down. Understanding the differences between these options can help you make the best financial decision for your needs.

What is Home Equity?

Home equity is the difference between your home's current market value and the outstanding balance on your mortgage.

Here is a super simple example. If your current home is worth $200k and you still owe $100k on your mortgage, you have built up $100k in home equity. When you run this quick calculation, it is easy to see how the equity you have built up over time may be sitting there – untapped.

Equity you have in your home can be a powerful tool for financing major expenses, such as home improvements, debt consolidation or education costs.

Benefits of Home Equity

Leveraging your home's equity can offer several distinct advantages:

Lower interest rates: Home equity loans and HELOCs typically have lower interest rates compared to unsecured loans or credit cards. Why? The loan is secured by your home.
Tax benefits: Interest paid on home equity loans and HELOCs may be tax-deductible, depending on how you use the funds and current tax laws.
Large loan amounts: You can potentially borrow larger amounts compared to personal loans, making it easier to finance significant expenses.

Scary Acronym

A HELOC (or home equity line of credit) sounds scary, but it works much like a credit card. You probably have a credit card in your purse or wallet right now. It provides you with a revolving line of credit based on your home's equity. You can borrow what you need, when you need it.

Here are some key features:

Flexibility: Borrow as much or as little as you need, up to your credit limit, during the draw period. What is a draw period? It is the period when you can borrow money up to your credit limit. With TTCU, the draw period is five years.
Interest rates: With a HELOC, the interest rate is typically variable, which means they can fluctuate with market conditions. TTCU's HELOC offers a 3-year fixed rate, followed by a monthly adjustable rate. This gives you initial payment stability before the rate becomes variable.
Repayment: During the draw period, you may only need to make interest payments. After the draw period ends, you enter the repayment period, where you pay back both principal and interest.
HELOCs are ideal for ongoing or unpredictable expenses, such as home renovations or medical bills. They offer the flexibility to access funds as needed, which is super versatile if that is something you need.

Less Acronym, More Loan

A home equity loan, also known as a second mortgage, provides a lump sum of money that you repay over a fixed term with set monthly payments.

Here are some key features:

Fixed interest rates: Your interest rate and monthly payments remain constant throughout the life of the loan.
Predictability: With fixed payments, you can budget more effectively.
One-time disbursement: Receive the entire loan amount upfront, making it ideal for large, one-time expenses.
Home equity loans are perfect for significant expenses where you know the exact amount needed, such as a major home remodel or consolidating (and paying off) high-interest debt.

Let’s Compare

Deciding between a HELOC and a home equity loan depends on your financial situation and goals.

Here are the key factors you should consider:

Purpose: If you need ongoing access to funds, a HELOC might be the better choice. For a one-time expense, a home equity loan is more suitable.
Interest rates: Consider whether you prefer the stability of a fixed rate (home equity loan) or the potential savings of a variable rate (HELOC).
Repayment terms: Think about your ability to manage variable payments versus fixed payments.

What’s Right for You

Understanding how you can use one of these lending options in real life can help you make an informed decision:

Remodeling your home? If you are planning a series of home improvements over time, a HELOC can provide flexibility to access funds as needed. If you are planning for one big renovation project, a home equity loan might be more appropriate.
Consolidating debt? Both HELOCs and home equity loans can be used to consolidate high-interest debt into a single, lower-interest payment, potentially saving you money on interest.
Paying for college? Education costs are crazy high. Financing education expenses can be unpredictable. A HELOC offers the flexibility to borrow as needed, while a home equity loan can provide a lump sum for tuition and other fixed costs.

Get Started

If you are like me and hate even the idea of moving, maybe it’s time to discover your home’s hidden potential. TTCU makes the application process simple and straightforward, regardless of which option makes sense for you.

One of our specialists, we call them mortgage loan originators, can help you find the best solution for your needs and then assist with every step of the process.
Apply online or reach out to a specialist to get started today.

Your home's equity is just sitting there – are you ready to put it to work?

Membership eligibility required. All loans are subject to credit approval, underwriting, collateral appraisal and terms and conditions. Offers subject to change or cancellation at any time without notice. Actual rates and terms may vary based on creditworthiness, property value, loan amount, and other factors. Not all will qualify for the lowest rate. Your home is collateral for this loan. Failure to make payments could result in foreclosure. Borrow only what you can repay. Consult a tax advisor regarding deductibility of interest.

HELOC - During the 5-year draw period, minimum payments are interest-only or $30, whichever is greater. After the 1st month or 36th month depending on the product you choose, your rate is based on an index plus a margin and varies monthly. After the draw period, a 15-year repayment period begins with monthly payments of principal and interest. As of 8/25/25, based on the index and margin, the fully indexed APR could be as low as 7.500%. Your rate may vary. Maximum APR is 18%. After the draw period, a 15-year repayment period begins with monthly payments of principal and interest. Closing costs range from $560 to $2,500. Property and/or flood insurance may be required and is not included in the closing costs.

Home Equity – rate is as low as 7.500% as of 8/25/25. Example: A $25,000 loan with 7.500% APR for 15 years would result in 180 monthly payments of $297.95. Actual rates and terms may vary. This is a representative example and does not constitute a loan offer.

For full terms, conditions, and current rates, please reach out to a TTCU Mortgage Loan Originator. This is not a commitment to lend.

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