The Many Benefits of Home Equity Loans

Are you facing a major lifestyle change, but are unsure of how to finance it? Obtaining a home equity loan might be the right answer for your finances. A home-equity loan, also known as a second mortgage, allows responsible homeowners to borrow money by leveraging the equity in their homes. Home equity loans are fixed-rate loans set at a lower interest rate than other lines of credit.

dollars-31085_640There are many benefits of a home equity loan that can help you secure financial assistance. Lower interest rates are an excellent draw for many homeowners. Home equity loans have lower interest rates compared to credit card annual percentage rates (APRs), and because a home equity loan is secured by the collateral of your home, lenders are more confident in a borrower’s ability to pay back debt. Borrowers benefit from this confidence with lower rates.

Borrowers can also benefit from a cash payment. Home equity loans, unlike other lines of credit, provide a lump sum of cash based on the amount of equity in your home, allowing you to pay off major expenses with one check.

Obtaining a home equity loan is an excellent option for certain and specific situations. If you are considering how to finance home improvement and renovations, a home equity loan can help you reinvest in your home and property value. Make the most of a smart investment by researching home property values in your area and making market-savvy options.

calculator-1276066_640An additional benefit of a home equity loan comes in the form of a potential tax deduction. With the consultation of a tax advisor, 100% of your home equity loan interest payments may be tax deductible. This can be a major advantage when comparing financial loan options, as 100% tax deduction may not be the case with credit card debt.

A home equity loan can simplify your finances and assist with debt consolidation. Home equity loans have fixed, lower interest rates and lower monthly payments. Additionally, a fixed rate will mean that you know exactly what you pay each month with no variation or surprises.

In the situation of a major life event or expense, such as a wedding or an unexpected medical expense, a home equity loan can help more than spreading such an expense over multiple credit cards or taking on private loans. While a home equity loan can be beneficial in certain situations, refrain from seeking a home equity loan on short-term expenses and property resales. In these situations, there will be better financing options at lower interest rates.

Twins Tickets Drawing

TopLine Federal Credit Union is sponsoring a sweepstakes in which you can enter for a chance to win a pair of Twins tickets valued at $191. Score a home equity loan or home equity line of credit and possibly a set of tickets to see the Twins in action! For more information, visit our website to see the Official Rules.

With so many options for financial assistance, let TopLine Federal Credit Union help pick an option that works best for your family to help you meet your financial goals, simplify your debt, and reach your ideal lifestyle. Apply online, or contact a friendly TopLine representative to get started!


Look for New Changes This Year in Social Security Filing

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There are some new changes in filing for Social Security coming this year. Due to a new budget bill signed late last year by President Obama, there have been some significant changes to the process of filing for Social Security benefits. In order to help your process run smoothly, here are some key points to take notice of:

  1.  People who have not yet signed up for Social Security benefits will no longer be able to use the program’s ‘File­and­Suspend’ claim, giving married couples fewer claiming options.
  1.  The ‘Restricted Application’ filing method will still exist, but will only provide benefits if the filing applicant is currently receiving benefits. New filers will not be able to collect a spousal benefit, but rather, filing for spousal benefits will be deemed by Social Security to trigger an individual’s own retirement benefit. Social Security will only pay an amount equivalent to the greater of the two benefits.
  1.  For filing applicants born in or after 1954, the ‘File­and­Suspend’ and ‘Restricted Application’ filing methods will not be available.
  1.  Individuals older than the age of 66 can continue to file and suspend until April 29, 2016. In doing so, the individual, their spouse, and qualifying family members may be eligible to receive benefits after the law becomes effective.
  1.  Individuals older than the age of 63 will be grandfathered in and will not be subject to expanding rules, meaning that if you filed for your own retirement benefits, your spouse can still file a restricted application for spousal benefits.
  1.  The bill will take full effect as of April 29, 2016, and are intended to close loopholes in Social Security claiming.

For more information on Social Security filing changes, visit Say Goodbye to the SocialSecurity ‘File­and­Suspend’ Strategy.

To help you further with resources on social security filing and the new government changes contact TopLine Investment Representative Shawn Gaustad. Call 763-391-9494 or email to schedule your complimentary, no-obligation consultation.


Shawn Gaustad is a Registered Representative of INVEST – a Financial Corporation that is not affiliated with TopLine Federal Credit Union or TopLine Investment Services. Past performance does not guarantee future results. This information is general in nature and should not be construed as tax or legal advice. INVEST Financial Corporation member FINRA, SIPC, and its affiliated insurance agencies offer securities, advisory services and certain insurance products. Products offered are:

  • Not insured by the FDIC/NCUA
  • Not a deposit or other obligation or guaranteed by any bank or credit union
  • Subject to risks including the possible loss of principal amount invested

INVEST Financial Corporation does not provide tax or legal advice. Please consult your tax and/or legal advisor for guidance on your particular situation.