If you've been eyeing that kitchen remodel, bathroom refresh, or backyard project for a while now, you're not alone. Americans spent over $500 billion on home renovation in 2025.* The question isn't whether to do it. It's how to pay for it.

You don't have to refinance to get there.

Good news: you can access your home's equity without giving up your existing mortgage, or that great rate you locked in years ago.

Here's how a Home Equity Line of Credit (HELOC) works.

A HELOC lets you borrow against the equity you've built without touching your first mortgage. Based on your home's value and what you still owe, you're approved for a maximum credit limit. From there, draw only what you need, pay only on what you use.

Six smart ways to put your equity to work

A HELOC is one of the most versatile financial tools available to homeowners. They’re also quite common. In fact, since 2023, one new HELOC has been opened for every two new mortgages.** Here are six of the best ways to use one:

• Home improvements and renovations. Renovations are unpredictable, which makes the flexible draw feature of a HELOC especially valuable. You can start with your initial budget, and rest assured that you have a reserve to pull from if things get more expensive than planned. Better yet, exterior updates, kitchen remodels, and bathroom renovations consistently rank among the projects with the highest return on investment, according to the National Association of Realtors.

• Debt consolidation. Credit card rates are sitting at historic highs. Using a lowerrate HELOC to pay off high-interest balances can mean significant monthly savings, and a clearer path to financial freedom.

• Emergency fund. Life rarely waits for a convenient time. Having a HELOC in place means you have access to funds when the unexpected happens, without having to drain your savings or resort to high-rate borrowing.

• Education costs. Tuition, books, and ongoing training add up fast. A HELOC can be a lower-rate alternative to student loans, with flexible repayment options that work with your timeline.

• Starting a business. If you’ve been sitting on a business idea, your home equity could be the startup capital you’ve been looking for. Many entrepreneurs use HELOCs for initial costs, inventory, or equipment, at rates far more affordable than most business loans.

• Buying property. Whether it’s a vacation home, a rental property, or land, a HELOC can provide a flexible source of funds for a down payment or even an outright purchase.

What makes LMCU’s HELOC different?

A lot of lenders make accessing your equity more complicated (and expensive) than it needs to be. At LMCU, we do it differently.

• No application fee. Many lenders charge you just to start the process. We don’t.

• No annual fee. Your line of credit stays open and ready, year after year, at no cost to keep it available.

• Surprisingly low rates. As a credit union, we're not here to maximize profit — we're here to maximize value for our members. It shows in our everyday rates. And it's why we're rated #1 for Return of the Member*** among credit unions in Michigan and Florida.

Is a HELOC right for you?

A HELOC tends to be a great fit if you have equity built up in your home, have a project or goal in mind, or simply want a flexible financial safety net. To qualify, you’ll generally need at least 15–20% equity, a credit score of 620 or higher, and a stable income.

It’s probably not the right move if you’re early in your mortgage and haven’t built much equity yet, or if you prefer a fixed, predictable repayment structure from the start. In that case, a fixed home equity loan might be worth exploring instead.

Not sure where you stand? That’s exactly what LMCU’s home equity experts are here for. No pressure, no jargon — just a straight conversation about whether a HELOC makes sense for your situation.

Ready to put your home’s equity to work?

Get started at HomeEquity.LMCU.org, call 844-440-5772, or stop by your nearest LMCU branch. We’re here to help you make the most of what you’ve built.

Want to go deeper on your overall financial wellness? LMCU’s Financial Wellness Center is packed with free tools, resources, and guidance — whether you’re just getting started or fine-tuning a plan that’s already in motion.

* Source: https://www.jchs.harvard.edu/blog/remodeling-expected-continue-slow-steady-growthnext-year

** Source: HELOC Balance Surpass $45.000 in 2024 | Experian

***Rated #1 for Return of the Member for credit unions in Michigan and Florida. Callahan & Associates, March 2025.