Is a Home Equity Line of Credit a Smart Decision?


Choosing to open a Home Equity Line of Credit (HELOC) can help you reach your financial goals and offer you more flexibility as you provide for your family’s needs. A HELOC is a loan in which the lender agrees to lend up to a maximum amount, where the collateral for the loan is the borrower’s equity in his or her house. This lending system is similar to a credit card, where the borrower can borrow up to a certain amount, and repay the amount drawn off the line of credit.

These loans are often used for larger expenses, rather than day-to-day expenses, because of the high-risk collateral of the home. Failure to repay the loan may result in foreclosure.

However, there are many benefits to opening a HELOC. As mentioned above, this line of credit will allow more flexibility in your expenses for your home or family. The flexibility in repay terms is also a definite advantage. Weigh your options carefully before choosing when to open a home equity line of credit, to make sure it’s the right decision for you and your family.

Utah Community Credit Union offers a HELOC with no fee and a low 1.99% rate. Our home equity products have all the features you need including the following:

  • Flexible terms
  • No closing costs or annual maintenance fees
  • No hassle application and approval process
  • Possible tax advantages (consult a tax professional for details)

Our Home Equity Line of Credit is a smart decision to help you and your family reach your financial goals. For more information and a full range of our home equity products, visit

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