Morning Mix


MSUFCU SmartLine℠ Home Equity Loan: What you need to know

Posted at 12:45 PM, Oct 07, 2020
and last updated 2020-10-07 12:45:43-04

The equity in your home is valuable and worth protecting. If home renovations are in your plans, having access to this equity may be useful.

MSUFCU Chief Marketing Officer Deidre Davis discusses how to access your home equity.

Home equity is defined as the difference between the appraised value of a home and the amount owed on its mortgage. Using your home’s equity may allow you to borrow money at a lower interest rate with a Home equity line of credit (HELOC) or home equity loans. Both use the value of your house as collateral for the loan.

A HELOC is a revolving line of credit that allows you to borrow as much as you need – up to the amount of available equity you have – over time with a variable interest rate, pay it back, and then have those funds available again in the future, while with a home equity loan, a lump sum is disbursed upfront and paid back in fixed installments over a set period of time.

Using your home equity can be a low-cost, convenient way to pay for home repairs, higher education, an upcoming wedding, or to consolidate debt. The equity in your home can be used for just about anything, but it’s a wise idea to have a specific purpose in mind, and a plan to pay it back.

Bottom line, before applying for a home equity loan or line of credit, have a clear understanding of your needs and what you’re wanting to use the money for.

MSUFCU recently introduced a SmartLine Home Equity Loan. With this loan, a member can use a portion of their line of credit and lock it at a fixed rate, and then pay a non-variable monthly payment amount for a specific term. The remaining line of credit can be used at a variable rate, or additional segments may be locked, and then the line replenishes as payments are made.

SmartLine offers the same great features of a HELOC, but with the option of being able to lock segments at the current interest rate. This flexibility allows members to keep track of their spending while potentially saving money.

Features of SmartLine include:

  • Lock $2,500 or more per segment
  • Lock up to three segments per loan
  • Repayment terms of 12-180 months on locked segments
  • Credit limit up to $300,000 (depending on equity in the home)
  • Replenish your credit availability with each payment

It’s quick and easy to apply for, and the interest may be tax-deductible.

To learn more, visit