How to Use Your Home to Better Manage Your Debt
Your home, your goals.
A Home Equity Line of Credit can help you better manage your debt.
Debt Consolidation
A Home Equity Line of Credit (HELOC) lets you consolidate your debt into one low monthly payment.
The average household has $9,654 in credit card debt. That's 965,400 pennies. The average credit card debt weighs the same as an adult male Rhinoceros. (5,321 lbs in pennies). That many pennies would stretch 201 foootball fields.
Let's compare paying off $9,000 in credit card debt.
Credit card (21.00% APR) and HELOC (9.00% APR) $6,373 savings. For illustrative purposes only. Actual rates are based on creditworthiness.
Moving your debt to a HELOC would save you over $6,000 over the life of the loan... and it would be paid off over two years faster!
Helping You With Major Repairs
A HELOC can also give you the cash you need for an unexpected emergency.
A HELOC can help you finance a new HVAC system. The Department of Energy recommends replacing your HVAC system after 10 years for maximum efficiency.
A HELOC can also help you finance a new roof. The average roof lasts between 15 and 30 years.
Don't paint yourself into a corner! A HELOC can help you with the cost of painting as well.
For a 2,500 sqft home: 2,500 sqft Home Exterior = 20 Gallons of Paint (two coats)
Giving You Peace of Mind
Don't let the stress of debt keep you from living better. A HELOC can help you with one low monthly payment.
Get a good night's sleep by consolidating your debt into one low monthly payment with a HELOC. The average American is awoken by three "debt nightmares" each week.
Reducing your debt stress doesn't have to be a fantasy. What would you do first if you won the lottery? 35% would pay off their debts first. Now cruising to Hawaii? That's step two...
Stop juggling and enjoy the simplicity of consolidating your debt into one HELOC payment. The average household has three credit cards.
Improving Your Credit Score
Don't let the stress of debt keep you from living better. A Home Equity Line of Credit can simplify your life with one low monthly payment.
The difference between "good" and "excellent" credit scores can be as little as one point.
Moving your credit card debt to a HELOC could boost your score. Too much credit card debt could hurt your score.
It's easy to use a HELOC
Home Equity Line of Credit
Finance up to 100% of the equity in your home.
All lines are subject to approval.
All applicants must meet underwriting criteria. Loan or line amount may be less than 100% of your home’s combined loan-to-value. To calculate your combined loan-to-value (CLTV), first establish the value of your home and the amount of any outstanding mortgage(s) you have on the property. Dividing the mortgage total by the home value is your loan-to-value (LTV). Your room to borrow is the amount you can add to your debt without going over your maximum CLTV. For example, if you have a $100,000 mortgage on a home that is worth $200,000, your LTV is 50%. If your lender is offering you a CLTV of 80%, that means you could borrow as much as $60,000, since ($100,000+$60,000)/$200,000 = 80%.
APR = Annual Percentage Rate. The APR for a Coastal Federal Credit Union Home Equity Line of Credit is variable and is based on Coastal Federal Credit Union’s Qualified Loan Program and includes the Relationship Pricing discount. Qualification for Relationship Pricing is based on having a 1st. Mortgage with Coastal Federal Credit Union. The minimum APR for a Home Equity Line of Credit is 8.25% APR with relationship pricing. The maximum APR for a Home Equity Line of Credit with no discounts is 13.45%. Your rate may vary and is determined by your credit qualifications, amount financed, collateral, loan terms, Relationship Pricing and combined loan-to-value. Please stop by your local branch or call our 24-hour call center at 800-868-4262 for more information.
Eligible lines are available for primary residences. Rates are subject to change daily. Lending area located in North Carolina, Virginia, and South Carolina. Coastal membership must be established prior to scheduled closing. No refinances of purchase money seconds within 12 months of the closing date. Property insurance is required. Flood Insurance may be required. The minimum line amount for a Home Equity Line of Credit is $5,000. All lending services are subject to credit approval. Contact a Coastal representative for specific rates and terms. Certain restrictions may apply. To qualify for Relationship Pricing the borrower must have a Coastal first mortgage or close this loan simultaneously with a new Coastal first mortgage.
All standard closing costs for properties located in North Carolina are paid by Coastal. Non-standard costs such as a full appraisal, title insurance, attorney fees and closing costs for properties located in Virginia or South Carolina must be paid by the borrower. To learn more about what closing costs applies to you, please contact your local branch or call our home equity team at 919-800-4750 to discuss.
Equal Housing Lender. Federally Insured by NCUA