Use Your Home To Pay For College
Don’t shortchange the student in your life.
As a homeowner, your equity can pay for more than home improvements or a new car. It can pay for college expenses as well!
Home Equity financing is typically more affordable than obtaining a student loan. You also help your student stay out of a cycle of debt and save your child from seeking more expensive types of lending, such as privatized loans with higher interest rates.
At First United CU, you can choose between two types of home equity financing:
- Fixed Rate Home Equity Loan. It offers a set rate, amount, and term for your loan. It works well for a specific project or purchase, a one-time event, or a defined expense.
- Home Equity Line of Credit (HELOC). It is an open line that can be accessed whenever you need it. The variable rate and amount of your line are based on your equity available and creditworthiness.
By leveraging your equity, you garner an excellent low rate. But the abundant uses with home equity financing is another key benefit. Use your home equity funds for any reason, including helping your child achieve their dream of a college education.
The first step is determining your available equity.
At First United Credit Union, we offer financing amounts up to 80% LTV of your home’s value; LTV is your loan-to-value, representing the ratio of your loan to the value of your home.
If you don’t have enough equity to borrow against, we can order a home appraisal to see if your home has increased in value. More than likely, it has. Michigan Realtors’ data shows that this year’s prices have exceeded June 2019 prices by 26.8%. This figure can be influenced by numerous factors, including your neighborhood’s home values and your home’s condition.
More Surprising Uses
College, home improvements, a new vehicle — all are common funding needs. But with home equity financing it’s just the tip of the iceberg. Think of your personal goals; maybe it’s running your own business, taking a trip around the world, or planning the perfect wedding. With home equity financing, the sky’s the limit!
Home Equity financing can pay for any need:
- Car, boat, or RV
- Fabulous vacation
- Second vacation home
- New business
- And much more!
To get started, call or text us at 616.532.9067. You can also apply online. And if you start now, you should have the financing in plenty of time for the new school year.