If you are in the market for credit, a home equity plan is one option that might be right for you. But before making a decision, you should do your research.

ORNL Federal Credit Union has an upcoming seminar on accessing home equity, Thursday, April 8th, at 6 pm at its main office in Oak Ridge. This is a free seminar and its open to anyone in the community, not just ORNL Federal Credit Union members.

What is the difference between a home equity loan and a line of credit?

A home equity loan allows you to borrow a set amount of money at a fixed interest rate. If you need a large amount of cash, then this is a good option for you. The rate of interest is fixed so you always know what your monthly payments will be.

A home equity line of credit allows you to reserve a line of money that you can use only if you need it. You can borrow from that line at any time in the future so you have the security that if you need the money, you can access it. You will make no monthly payments until you actually draw on the money. The interest rate on an equity line of credit is not fixed; it varies based on the prime rate.

Most home equity products are used to make improvements to the home such as a kitchen remodel or building a room addition.

However, with the competitive interest rates available today, we're seeing more people turn to home equity products to consolidate debt, pay for increased medical expenses, college tuition, home repairs, or just about any other worthy purpose where a larger sum of money may be needed.

Home equity options available to you depend on your home's value, your credit rating, and other factors. Typically you can borrow anywhere from $10,000 to $100,000.

ORNL Federal Credit Union makes the application painless.
While there are 32 branches throughout our 16 counties in East Tennessee, you can also apply over the phone by calling 1-800-676-5328 or online at www.Ornlfcu.Com.