Sponsored - The following content is created on behalf of Hawaii State FCU and does not reflect the opinions of Gray Media or its editorial staff. To learn more about Hawaii State FCU, visit https://www.hawaiistatefcu.com/.
Despite the changes we’ve experienced over the past year, we all still have expenses to consider. When people are looking at making significant purchases, many times the first thing they’ll do is apply for a personal loan or apply charges to their credit card. What many homeowners don’t realize is that they have another financing option available to them! They can use the equity in their home to secure a loan or line of credit. And often times, it can result in substantial savings compared to other financing options.
HI Now host Kanioa Carlson spoke with Victor Brock at Hawaii State FCU to learn about some of the benefits of a home equity loan or line of credit compared to using a credit card.
“First off, interest rates on home equity secured loans and home equity lines of credit tend to be substantially lower than those on credit cards and store cards,” Brock says. “A lot of times, we see members who have equity in their properties but are carrying large monthly balances on their credit cards. By taking advantage of the existing equity in their home and moving their card balances to home equity financing, they may save hundreds or even thousands of dollars in interest each year.”
One of the best things about home equity lines of credit (HELOC) is that they provide significant flexibility.
“At Hawaii State FCU, we offer HELOCs with the option to set a pre-defined pay-back term for separate balances within your line of credit, with each term customized to your needs and to fit your financial goals,” Brock explains. “Having more than one major expense is common for many Hawaii families. For example, you may need to remodel your home, and at the same time pay off a new vehicle. You may also be trying to consolidate your existing debt.”
With separate balances, you can schedule your home remodeling to be paid off after 10 years, while scheduling your auto purchase to be paid off in seven years. And then maybe your consolidated credit card balances can be paid off faster in three years.
“We offer fixed rates for these separately scheduled balances, so you know exactly what your payment will be for the entire term, making it easier to budget,” Brock adds.
Hawaii State FCU members also enjoy the benefits of competitive rates, lower “floor” interest rates, low closing costs, and more.
Setting up a HELOC can also be substantially easier and less expensive than refinancing your entire existing mortgage balance. Unlike a traditional refinance mortgage, with a line of credit, you have the flexibility of borrowing what you need, when you need it, and can avoid paying interest when funds aren’t needed.
Hawaii State FCU offers a variety of lending options to meet your needs, including personal loans, auto loans, mortgages, photovoltaic loans, and more.
Anyone interested in learning more about the benefits of home equity financing through Hawaii State FCU are encouraged to visit HawaiiStateFCU.com for more information. You can also make an appointment to speak with one of the credit union’s financial specialists online using the Hawaii State FCU Mobile App.