Your home is more than a residence: How to get the most out of your equity

Don’t leave hard-earned assets on the table.
Justin Burgess Avatar
California, USA

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For almost everyone who owns a home, their primary residence makes up much of their net worth. It’s a huge investment and has the potential to massively increase in value depending on market conditions. Having access to the opportunity is so important because a home builds generational wealth through equity, which, in basic terms, is its market value minus the amount remaining on the loan.

It’s simple to understand, but many servicemembers and veterans don’t realize what an amazing opportunity equity presents. For example, if you own a home valued at $200,000, and have $100,000 remaining on your mortgage payment, then you have approximately $100,000 in home equity. An upgrade to your property that costs $10,000 but adds $30,000 in value is a net equity gain of $20,000.

Equity is the unrealized value of your residence, which can be used to help improve your portfolio through a home equity loan from Navy Federal Credit Union.

What that means is you can get a lump sum loan for up to 100% of the equity1 in your home valuation, and unlike a standard home loan, there are no closing costs or hidden charges. NFCU does not charge application or origination fees, no closing costs, and the rate will remain fixed for the life of the loan.

You also have flexibility on the lifespan of your loan, choosing from 5, 10, 15, or 20 years. That’s money you can use for another property or investment purchase to expand your portfolio, consolidate and pay off higher interest debt, large home renovations, large medical bills, etc.

The best part about accruing equity is that you’re not limited in how you use it. If a large lump sum isn’t the best for your needs, or you’re uncertain how much you’ll need, then perhaps a home equity line of credit2 is a better fit. If you expect to have variable, ongoing expenses then the credit line will give you a reliable source of funds, which only needs to be used when needed. With incredibly low rates, you can obtain up to 95% of your home’s equity3. The more equity you have, the more you can draw against, from $10,000 to $500,000. You’ll receive a 20-year draw period followed by a 20-year repayment period. Like their fixed rate option NFCU won’t charge you application or origination fees for a line of credit, no closing costs, and there are no annual fees or penalty for inactivity. Which means you have the money when you need it, with no requirement to spend it if you don’t. Only borrow what you require.

If you’ve been making regular payments and increasing the equity in your home, or the market has taken a giant leap and you’ve seen a significant growth in the value of the property, then it might be the perfect time to contact your friendly local NFCU representative and see what the best option is for leveraging your hard work into a financial tool that could pay serious dividends in the future.

What are you waiting for? Let’s put your hard-earned home equity to work!

This article was sponsored by Navy Federal Credit Union. Navy Federal Credit Union is federally insured by NCUA.


1 Some restrictions may apply. Factors that may impact the amount of equity that can be borrowed include evaluation of credit history, CLTV ratio, occupancy, loan amount, and loan term (5, 10, 15, 20 years).

2 Home Equity Lines of Credit (HELOC) are variable-rate lines. Rates are as low as 8.750% APR and 9.750% for Interest-Only Home Equity Lines of Credit and are based on an evaluation of credit history, CLTV (combined loan-to-value) ratio, line amount, and occupancy, so your rate may differ. HELOC has a minimum APR of 3.99% and a maximum APR of 18%. Members who choose to proceed with an Interest-Only HELOC may experience significant monthly payment increases when the line of credit enters the repayment phase. Navy Federal will pay for all closing costs on HELOC applications dated on or after June 3, 2024. Covered closing costs paid to 3rd parties include settlement fees, credit reports, flood determinations, property valuations (including appraisals, if required), title searches, lender’s title insurance, recording, and government charges. The member is responsible for prepaid interest and escrow payments for 1st lien HELOCs. Member must carry homeowners’ insurance on the property that secures the HELOC. For loan amounts up to $250,000, closing costs typically range between $300 and $2,000. Applications for a HELOC include a request for a HELOC Platinum Credit Card. All loans subject to approval. Offer is subject to change or cancellation without notice. Rates are subject to change. HELOC loans are not available in Texas.

3 Some restrictions may apply. The maximum CLTV for primary and second properties is 95% and for investment properties is 70%. Factors that may impact the amount of equity that can be borrowed include evaluation of credit history, CLTV ratio, occupancy, and loan amount.

Justin Burgess Avatar

Justin Burgess

Contributing Writer

Justin Burgess joined the Army in 2006 as an infantry officer and served two combat tours in Afghanistan and one in Iraq. He left the military in 2016 to learn what it was like to be a civilian. Since then Justin has published several novels and hundreds of articles for The Duffel Blog. When not writing or busy with his day job he likes to hunt and hike the North Georgia mountains.