Highmark Federal Credit Union in Rapid City discusses how members can use their home equity for college tuition costs
Rapid City, S.D. “ With semester tuitions due in January for colleges across the country and locally in South Dakota, one Rapid City credit union suggests several options for their members to look into several options to assist with the cost.
œMany residents are not aware that outside of the traditional loan arrangements one can make for school tuition costs, there is the option to use your home equity as a solution to the rising costs of sending your children to school, said Joanie Howland, Mortgage Lending Manager.
Howland explained through refinancing your home to a lower rate, you can access the cash with the equity earned in the house. If refinancing isn't an option then there are other options in accessing your home's equity, such as a second mortgage or home equity line of credit. The benefit to these alternatives is that the closing costs are significantly less than with a first mortgage.
œOne way to access your home's equity while keeping the first mortgage intact is with a second mortgage. A second mortgage is an economical alternative when you want to access these additional funds in a single step. However, if you want to make multiple advances on your home equity, a home equity line of credit is the way to go, explains Howland.
Howland further clarifies, that with college tuition, you may need to access additional cash once or twice a year - with each new semester - and in that way, it can be more beneficial to use a home equity loan. Through a home equity loan, you are only incurring the additional debt as you need it. Highmark Federal Credit Union offers the choice between a VISA access, or standard equity draw in accessing home equity on an intermittent and incremental basis.
For more information on how much equity you have, the best way to access it, and the difference in rates/terms, contact Highmark Federal Credit Union at www.highmarkfcu.com
About Highmark Federal Credit Union
As the leading Rapid City Credit Union, Highmark Federal Credit Union is a not-for-profit organization that takes pride in the level of customer service they provide to each and every one of their members. From standard checking and savings accounts to business lending and car loans, Highmark Federal Credit Union can help assist you with any financial challenges you may be facing. For more information visit, http://www.highmarkfcu.com