Merrimack Valley CU
Auto & Personal Credit Card Mortgage & Home Equity Undergraduate, Graduate, & Refi Commercial Loans & Lines

Online Banking

Forgot Username?

Forgot Password?

Register

Need Help?

Online Banking

Forgot Username?

Forgot Password?

Register

Need Help?

MVCU, Home, Equity
Home / News & Financial Education / Home Equity: It’s not just for home improvements!
Home Equity: It’s not just for home improvements!By merrimack on 5/23/2023

Home Equity: It’s not just for home improvements!

A lot of times when people think of home equity, they think of fixing or renovating their house. Did you know you can use that money for things that aren’t house related?

First of all, What is Equity?

is the difference between the market value of your home and what you owe on your mortgage. Say the market value of your home is $275,000 and you owe $200,000, you would have $75,000 in equity.

How can I tap into it?

A home equity loan pays the loan amount in one lump sum and you pay a fixed amount for the length of the loan. You immediately make principal and interest payments but can use the funds however you wish. A home equity line of credit, on the other hand, allows you to withdraw money when you want it. It’s perfect for when you want access to additional funds but you’re not sure when you’ll need it or how much you’ll want. You’ll only pay when you use the money, so the payment amount will vary.

Home equity loans and lines of credit typically have lower rates than other loans because they’re backed up by collateral: your home! Here are seven ways to tap into your home’s equity that are not related to your home:

  1. Consolidating debt
  2. Paying for a wedding
  3. Paying medical bills
  4. College tuition or student loan payments
  5. Buying an investment property
  6. Starting a business
  7. Buying a car

Your home is likely your greatest asset, and it should be working for you! Learn more about Home Equity Loans and Lines of credit:

Learn More

  • Share:

Category: Home Ownership



« Return to "Blog"

You may also like:

mvcu
11/5/2021

5 Tips to Get Ready to Move

Are you preparing to find your dream house?  Before you make the giant leap, here are 5 Tips to Get Ready for a Move:

Read more

Home Ownership
MVCU, fall, budget
9/6/2021

The 5 Best Home Improvements to Make in Early Fall

Do you have a list of things that need to be fixed or updated around the house? Well, now may be the perfect time! For a variety of reasons, early fall is a great time of year to make home improvements. The days are still warm enough to tackle outdoor projects or leave the windows open, the kids are back in school, and contractors may be more available for certain types of projects. 

Read more

Home Ownership
MVCU, car, commercial
1/10/2021

What’s the Deal with Life Insurance?

There’s a common misconception that life insurance is only for those married with children.

Read more

Home Ownership
MVCU, condo, home, single family
1/5/2021

Single Family vs Multi-Family vs Condo: Which Home Is Right?

Whether you’re considering your first home purchase or a move from your current home, there are several options available. Choosing a single family house, a multifamily property, or a condominium all have pros and cons. As you begin hunting for the perfect dwelling, be open to the possibilities.

Read more

Home Ownership
MVCU, home insurance, home
8/8/2020

How Does Home Insurance Really Help?

Home insurance is required with most mortgages and provides wide-reaching protection to you and your family. If your house is ever damaged or destroyed, you would still be responsible for making your mortgage payments. Homeowners Insurance helps protect your personal finances and provides peace-of-mind to your family.

Read more

Home Ownership
MVCU, budget, spring
4/28/2021

4 Great Home Improvement Projects for Spring

It’s official, spring is really here! Soon you’ll be opening windows to let in fresh air. Many families dive into spring cleaning and home improvement projects in the spring. Here are some home improvement projects that make sense this time of year:

Read more

Home Ownership
MVCU, budgeting, home ownership
1/7/2022

Think Pink: Goals for 2022

Is anyone else confused at how it is already 2022?! Growing up, I always felt that the years were so much longer. However, the older I get the more I realize how quickly each day goes by. I began my career at the credit union when I was young and fresh out of college. Now, I am in my late 20’s and my back pops when I bend over!

Read more

Home Ownership
MVCU, mortgage, refinance, home
7/12/2019

3 Huge Reasons to Refinance Your Mortgage

Has it been a few years since you purchased your home? Things may have changed for you since you made that commitment to a 30-year mortgage – your income and credit score could have gone up.  Interest rates may have gone down. Now is a great time to see if refinancing your mortgage makes sense for you!

Read more

Home Ownership
MVCU, home, buying
10/27/2022

Four mistakes to avoid as a first-time home buyer

Don’t fall into these traps when purchasing your first house. Searching for your first home can be exciting and sometimes a little scary. It’s generally the largest expense most people will ever make, so it really pays to do your homework, and arm yourself with knowledge and a team of professionals who can help you avoid the pitfalls some first-time homebuyers find themselves making.

Read more

By Jean ChatzkyHome Ownership
MVCU, home owner, value
10/27/2022

Add it Up

Simple ways to add value to your home. It’s a seller’s housing market, but that doesn’t mean you have to be complacent about your home’s value. Here are several projects that can add value to your home, so that when you do decide to sell, you’ll get the best offers possible.

Read more

By Chris O'SheaHome Ownership
MVCU, Home, Equity
5/23/2023

Home Equity: It’s not just for home improvements!

A lot of times when people think of home equity, they think of fixing or renovating their house. Did you know you can use that money for things that aren’t house related?

Read more

By merrimackHome Ownership
MVCU, house, mortgage, home buying, buying home, home,
4/1/2024

Navigating Your First Home Purchase

Purchasing your first home and becoming a first-time homeowner is a significant milestone. While the prospect of becoming a first-time homeowner can be exciting, it can also be intimidating. The more information you have about buying a home, the better position you will be in. Here are five tips to help you in your home search.

Read more

By merrimackHome Ownership
home buying, home insurance, home ownership, home equity, equity, loan
8/1/2024

What is Home Equity?

Home equity is the value of a homeowner's interest in their home. It is calculated as the difference between the home's current market value and the outstanding balance of any mortgages or liens on the property. For example, if your home is worth $300,000 and you owe $200,000 on your mortgage, your home’s equity is $100,000.

Read more

By merrimackHome Ownership