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What Home Equity Product is Right for You?

Your home has been working hard for you, building value while you make memories. But did you know that value (your "equity") can actually work for you in return?

At SharePoint Credit Union, we know that no two financial journeys are the same. Whether you’re staring at a 1990s kitchen that needs a glow-up or you’re looking to simplify your monthly bills, there is a path for you.

The question is: Which equity path fits your life right now?

Path A: Home Equity Loan

Think of this as the "Project Specialist." If you have a specific goal with a set price tag, this is likely your best route.

• How it works: You get a one-time lump sum of cash up front.

• The Vibe: Predictable. You’ll have a fixed interest rate and the same monthly payment for the life of the loan.

• Perfect for:

  • A complete kitchen or bath remodel with a contractor's quote in hand.

  • Installing that stone path and professional landscaping you’ve been dreaming of.

  • Any major one-time purchase where you want to know exactly when it will be paid off.

Path B: HELOC

A Home Equity Line of Credit (HELOC) is like a safety net and a toolbox combined. It’s a revolving line of credit that you can use, pay back, and use again.

• How it works: You’re approved for a limit, but you only borrow what you need, when you need it. You only pay interest on the amount you’ve actually spent.

• The Vibe: Adaptable. It’s there if you need it, and quiet if you don't.

• Perfect for:

  • Ongoing home updates (e.g., painting this month, new light fixtures next month).

  • Consolidating high-interest credit card debt into one manageable, lower-interest payment.

  • An emergency "rainy day" fund for unexpected home repairs or medical bills.

Take the Quiz: Which Path Are You On?

1. How do you plan to spend the funds?

• A: All at once on a single big project.

• B: Over time, or I want to have it available "just in case."

2. How do you feel about interest rates?

• A: I want to lock in one rate now so I never have to think about it again.

• B: I’m okay with a variable rate because I like the flexibility of only paying for what I use.

3. What is your primary goal?

• A: To finish a specific renovation or make a large purchase.

• B: To have a financial tool I can use for debt consolidation, travel, or multiple smaller projects.

The Verdict:

• Mostly As: You’re a Home Equity Loan person! You value stability and have a clear finish line in sight.

• Mostly Bs: You’re a HELOC person! You value flexibility and want your equity to be a revolving resource.