Whether it’s for home repairs, debt consolidation, or other expenses, a home equity line of credit (HELOC) can be a great resource for homeowners to get the cash they need. When it comes to applying for a HELOC loan, you may be faced with the challenge of finding the right lender.
There are plenty of banks that provide HELOC loans, but it’s worth it to consider working with a credit union instead. From exclusive member benefits, great rates, and personable customer service, discover all of the pros of working with a credit union to fund your HELOC.
Benefits of joining a credit union
If you haven’t considered tapping into your home’s equity with a credit union HELOC, now is the time. Credit union memberships come with big payoffs in the form of savings, exclusive member benefits, and more.
Credit union membership
As non-profit entities, credit unions are less concerned with turning a profit and dedicated to passing savings directly to customers. Rather than answering to stakeholders, credit unions are owned by the members they serve and in turn make members the priority.
Credit unions are able to cater to their members’ needs and provide personalized support throughout the lending process. It’s their job to help you overcome the challenges home financing – whether it’s purchasing a new home, refinancing and existing home, or getting a HELOC loan. Some credit unions even provide added training, counseling, and knowledge resources to help members better understand their finances.
As a credit union member, you’ll also gain access to a wider variety of service offerings. If you’re in the market for a HELOC, you may be more likely to find variable- and fixed-rate options at a credit union.
Credit union mortgage rates
Unlike a for-profit bank, credit unions focus on breaking even and providing more savings to members. Credit unions may have lower fees for HELOCs and other mortgage products in comparison to their bank counterparts. Many may offer lower interest rates or APRs that you can take advantage of.
When you become a credit union member, you’re not just a number. You are part of a community driven to help you succeed in your financial goals.
Disadvantages of using a credit union
Yes, a membership may be required to access a HELOC and the benefits of borrowing with a credit union. Many people may believe they aren’t able to meet membership requirements depending on whether they live near one or not. The great news is that there are online credit unions with memberships open to everyone, no matter where they live!
It is important to note that credit unions typically have fewer branches than traditional banks. You may have a harder time finding a physical location near your home or work. Though there are credit unions that offer online services so you can access their benefits from anywhere.
Credit union HELOCs
When it comes to HELOCs, credit unions are typically able to offer lower interest rates to qualifying borrowers. Since they are smaller than banks, credit unions are able to provide personalized and dedicated customer service to walk you through all of your lending options.
Not all credit unions are the same though, so it’s important to diligently research and carefully consider who you choose as your lender.