HELOC 101: How to Make the Most of Your Home’s Equity

Great Falls Edit
May 22
2 min read

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For many homeowners, equity is one of their greatest financial assets. A Home Equity Line of Credit (HELOC) allows borrowers to access that equity for major expenses, home improvements, or financial flexibility. But is a HELOC the right option? The mortgage experts at Montana Credit Union explain how it works – and how to use it wisely.

What is a HELOC?

A HELOC functions as a revolving line of credit secured by your home’s equity. Instead of receiving a lump sum, borrowers can withdraw funds as needed during the draw period, which typically lasts seven years at Montana Credit Union.

“The main advantage of a HELOC is flexibility,” said Lindsay Lee, a loan officer at Montana Credit Union. “Unlike a traditional loan, you can access funds when you need them and only pay interest on what you use.”

Common Uses for a HELOC

Homeowners often use HELOCs for home renovations, but they can also serve as a strategic financial tool in other ways:

Debt Consolidation: Borrowers can pay off high-interest credit cards or personal loans at a lower interest rate.
Emergency Funds: A HELOC provides access to funds for unexpected expenses, offering financial security without the need for high-interest borrowing.
Home Investments: Renovations such as kitchen remodels or basement finishing can increase a home’s value over time, so it might make sound financial sense to finance home projects such as these.

Fixed vs. Adjustable: Choosing the Right Option

Montana Credit Union offers two types of home equity products:

Traditional HELOC: Features a lower introductory rate, followed by an adjustable rate.
Fixed-Rate Home Equity Loan: Offers a stable, predictable interest rate for those who prefer consistent payments.

“If a borrower is consolidating debt and has a lower credit score, we often recommend the fixed-rate option,” Lee explains. “It prevents them from falling into a cycle of continuous borrowing.”

What Sets Montana Credit Union Apart?

Four people in an office, two women smiling and talking, one in a blue sweater, one in teal. Brightly lit with glass partitions.

Montana Credit Union offers competitive advantages, including longer fixed-rate terms than many other lenders, a streamlined application process, and personalized service. In many cases, loans can be completed within 30 days.

“For many homeowners, equity is an untapped resource,” Lee says. “Our role is to guide borrowers through their options, ensuring they make informed financial decisions.”

Whether you're looking to renovate, consolidate debt, or build financial security, Montana Credit Union is here to help — guiding you ahead with expert advice and flexible solutions tailored to your needs. Call 406-727-2210 or visit www.mymontanamortgage.mymortgage-online.com to get started.