A Home Equity Line of Credit (HELOC) is a line of credit similar to a credit card, only this line of credit is secured by the equity in your home. A limit is set when the line is opened and you can access the funds as needed, only paying interest on the balance that has been drawn. HELOCs traditionally have a variable interest rate tied to the federal prime rate which can move up or down once per quarter. Unlike a traditional HELOC, a Craft Choice HELOC allows you the ability to lock in the balance you've spent at a fixed rate. Your rate won't change, even when the market goes up and the federal prime rate increases.  Additionally with On Tap Credit Union, you choose when and if you draw plus there is no limit to how many times the line of credit can be accessed. You can pay off your principle balance at any time and maintain a zero balance for as long as you'd like with no fee. Funds can be accessed for 10 years followed by a repayment period of up to another 15 years. During the latter repayment period on the final balance, funds can no longer be access but payments can still be made. This adds flexibility to your borrowing decisions and is frequently used to help manage home improvement repair costs, consolidate high interest debts, or as a safety net to help cover unexpected expenses.

Home Equity Loans, sometimes referred to as Second Mortgages, are more similar to a traditional mortgage loan in which the amount you choose is set and all the funds are delivered up front. Interest is applied at a fixed rate over the term that you select which can go up to 20 years. This solution works well when the amount you need to borrow is well defined such as consolidating several high interest debts, paying off fixed cost expenses, or making a large purchase.

Banks are for-profit institutions owned by shareholders, while credit unions are not-for-profit organizations owned entirely by the members of the credit union. This means that credit unions typically offer lower fees and better interest rates as they aim to benefit members rather than simply generating profit. Additionally, as representatives of their member base, credit unions focus on community involvement and provide a more personalized banking experience. 

Joining On Tap is simple and you can become a member by living or working throughout Jefferson, Boulder, Denver, and Larimer counties. In addition, being a part of one of several local select employee groups including Colorado craft breweries, MillerCoors, Molson Coors, CoorsTek, Coors Distributing Company (CDC), Terumo BCT, and many more can qualify you for membership. Connect with us at 303.279.6414 for more details if you are unsure how to qualify.